Correlation Between COL Digital and Shandong Homey
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By analyzing existing cross correlation between COL Digital Publishing and Shandong Homey Aquatic, you can compare the effects of market volatilities on COL Digital and Shandong Homey 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 Shandong Homey. Check out your portfolio center. Please also check ongoing floating volatility patterns of COL Digital and Shandong Homey.
Diversification Opportunities for COL Digital and Shandong Homey
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between COL and Shandong is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding COL Digital Publishing and Shandong Homey Aquatic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Homey Aquatic 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 Shandong Homey. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Homey Aquatic has no effect on the direction of COL Digital i.e., COL Digital and Shandong Homey go up and down completely randomly.
Pair Corralation between COL Digital and Shandong Homey
Assuming the 90 days trading horizon COL Digital Publishing is expected to generate 2.36 times more return on investment than Shandong Homey. However, COL Digital is 2.36 times more volatile than Shandong Homey Aquatic. It trades about 0.07 of its potential returns per unit of risk. Shandong Homey Aquatic is currently generating about 0.0 per unit of risk. If you would invest 973.00 in COL Digital Publishing on August 28, 2024 and sell it today you would earn a total of 1,898 from holding COL Digital Publishing or generate 195.07% 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. Shandong Homey Aquatic
Performance |
| Timeline |
| COL Digital Publishing |
| Shandong Homey Aquatic |
COL Digital and Shandong Homey Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COL Digital and Shandong Homey
The main advantage of trading using opposite COL Digital and Shandong Homey positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COL Digital position performs unexpectedly, Shandong Homey 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 Shandong Homey will offset losses from the drop in Shandong Homey's long position.| COL Digital vs. Industrial and Commercial | COL Digital vs. Agricultural Bank of | COL Digital vs. China Construction Bank | COL Digital vs. Bank of China |
| Shandong Homey vs. China Petroleum Chemical | Shandong Homey vs. PetroChina Co Ltd | Shandong Homey vs. China State Construction | Shandong Homey 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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