Correlation Between COL Digital and Shanghai Shibei
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By analyzing existing cross correlation between COL Digital Publishing and Shanghai Shibei Hi Tech, you can compare the effects of market volatilities on COL Digital and Shanghai Shibei 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 Shanghai Shibei. Check out your portfolio center. Please also check ongoing floating volatility patterns of COL Digital and Shanghai Shibei.
Diversification Opportunities for COL Digital and Shanghai Shibei
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between COL and Shanghai is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding COL Digital Publishing and Shanghai Shibei Hi Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Shibei Hi 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 Shanghai Shibei. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Shibei Hi has no effect on the direction of COL Digital i.e., COL Digital and Shanghai Shibei go up and down completely randomly.
Pair Corralation between COL Digital and Shanghai Shibei
Assuming the 90 days trading horizon COL Digital Publishing is expected to generate 0.84 times more return on investment than Shanghai Shibei. However, COL Digital Publishing is 1.2 times less risky than Shanghai Shibei. It trades about -0.42 of its potential returns per unit of risk. Shanghai Shibei Hi Tech is currently generating about -0.49 per unit of risk. If you would invest 2,925 in COL Digital Publishing on October 15, 2024 and sell it today you would lose (688.00) from holding COL Digital Publishing or give up 23.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
COL Digital Publishing vs. Shanghai Shibei Hi Tech
Performance |
| Timeline |
| COL Digital Publishing |
| Shanghai Shibei Hi |
COL Digital and Shanghai Shibei Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COL Digital and Shanghai Shibei
The main advantage of trading using opposite COL Digital and Shanghai Shibei positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COL Digital position performs unexpectedly, Shanghai Shibei 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 Shanghai Shibei will offset losses from the drop in Shanghai Shibei's long position.| COL Digital vs. Keda Clean Energy | COL Digital vs. Great Sun Foods Co | COL Digital vs. Xizi Clean Energy | COL Digital vs. Qumei Furniture Group |
| Shanghai Shibei vs. Sichuan Fulin Transportation | Shanghai Shibei vs. COL Digital Publishing | Shanghai Shibei vs. China Eastern Airlines | Shanghai Shibei vs. Duzhe Publishing Media |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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