Correlation Between COL Digital and Shanghai Jin
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By analyzing existing cross correlation between COL Digital Publishing and Shanghai Jin Jiang, you can compare the effects of market volatilities on COL Digital and Shanghai Jin 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 Jin. Check out your portfolio center. Please also check ongoing floating volatility patterns of COL Digital and Shanghai Jin.
Diversification Opportunities for COL Digital and Shanghai Jin
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between COL and Shanghai is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding COL Digital Publishing and Shanghai Jin Jiang in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Jin Jiang 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 Jin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Jin Jiang has no effect on the direction of COL Digital i.e., COL Digital and Shanghai Jin go up and down completely randomly.
Pair Corralation between COL Digital and Shanghai Jin
Assuming the 90 days trading horizon COL Digital Publishing is expected to generate 1.99 times more return on investment than Shanghai Jin. However, COL Digital is 1.99 times more volatile than Shanghai Jin Jiang. It trades about -0.01 of its potential returns per unit of risk. Shanghai Jin Jiang is currently generating about -0.22 per unit of risk. If you would invest 3,107 in COL Digital Publishing on August 30, 2024 and sell it today you would lose (115.00) from holding COL Digital Publishing or give up 3.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
COL Digital Publishing vs. Shanghai Jin Jiang
Performance |
| Timeline |
| COL Digital Publishing |
| Shanghai Jin Jiang |
COL Digital and Shanghai Jin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COL Digital and Shanghai Jin
The main advantage of trading using opposite COL Digital and Shanghai Jin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COL Digital position performs unexpectedly, Shanghai Jin 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 Jin will offset losses from the drop in Shanghai Jin's long position.| COL Digital vs. Zhongrun Resources Investment | COL Digital vs. Vanfund Urban Investment | COL Digital vs. Metro Investment Development | COL Digital vs. Longmaster Information Tech |
| Shanghai Jin vs. Hunan Investment Group | Shanghai Jin vs. Silkroad Visual Technology | Shanghai Jin vs. Shandong Hi Speed RoadBridge | Shanghai Jin vs. Harbin Hatou Investment |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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