Correlation Between COL Digital and Xinjiang Tianrun
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By analyzing existing cross correlation between COL Digital Publishing and Xinjiang Tianrun Dairy, you can compare the effects of market volatilities on COL Digital and Xinjiang Tianrun and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in COL Digital with a short position of Xinjiang Tianrun. Check out your portfolio center. Please also check ongoing floating volatility patterns of COL Digital and Xinjiang Tianrun.
Diversification Opportunities for COL Digital and Xinjiang Tianrun
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between COL and Xinjiang is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding COL Digital Publishing and Xinjiang Tianrun Dairy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Tianrun Dairy and COL Digital is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on COL Digital Publishing are associated (or correlated) with Xinjiang Tianrun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Tianrun Dairy has no effect on the direction of COL Digital i.e., COL Digital and Xinjiang Tianrun go up and down completely randomly.
Pair Corralation between COL Digital and Xinjiang Tianrun
Assuming the 90 days trading horizon COL Digital Publishing is expected to generate 2.58 times more return on investment than Xinjiang Tianrun. However, COL Digital is 2.58 times more volatile than Xinjiang Tianrun Dairy. It trades about 0.06 of its potential returns per unit of risk. Xinjiang Tianrun Dairy is currently generating about -0.05 per unit of risk. If you would invest 1,691 in COL Digital Publishing on September 12, 2024 and sell it today you would earn a total of 1,389 from holding COL Digital Publishing or generate 82.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
COL Digital Publishing vs. Xinjiang Tianrun Dairy
Performance |
| Timeline |
| COL Digital Publishing |
| Xinjiang Tianrun Dairy |
COL Digital and Xinjiang Tianrun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COL Digital and Xinjiang Tianrun
The main advantage of trading using opposite COL Digital and Xinjiang Tianrun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COL Digital position performs unexpectedly, Xinjiang Tianrun can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Xinjiang Tianrun will offset losses from the drop in Xinjiang Tianrun's long position.| COL Digital vs. Kweichow Moutai Co | COL Digital vs. Shenzhen Mindray Bio Medical | COL Digital vs. G bits Network Technology | COL Digital vs. Beijing Roborock Technology |
| Xinjiang Tianrun vs. China Petroleum Chemical | Xinjiang Tianrun vs. PetroChina Co Ltd | Xinjiang Tianrun vs. China State Construction | Xinjiang Tianrun vs. China Railway Group |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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