Correlation Between COL Digital and Jiangsu Broadcasting
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By analyzing existing cross correlation between COL Digital Publishing and Jiangsu Broadcasting Cable, you can compare the effects of market volatilities on COL Digital and Jiangsu Broadcasting 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 Jiangsu Broadcasting. Check out your portfolio center. Please also check ongoing floating volatility patterns of COL Digital and Jiangsu Broadcasting.
Diversification Opportunities for COL Digital and Jiangsu Broadcasting
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between COL and Jiangsu is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding COL Digital Publishing and Jiangsu Broadcasting Cable in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Broadcasting 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 Jiangsu Broadcasting. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Broadcasting has no effect on the direction of COL Digital i.e., COL Digital and Jiangsu Broadcasting go up and down completely randomly.
Pair Corralation between COL Digital and Jiangsu Broadcasting
Assuming the 90 days trading horizon COL Digital Publishing is expected to generate 2.19 times more return on investment than Jiangsu Broadcasting. However, COL Digital is 2.19 times more volatile than Jiangsu Broadcasting Cable. It trades about 0.12 of its potential returns per unit of risk. Jiangsu Broadcasting Cable is currently generating about 0.1 per unit of risk. If you would invest 1,614 in COL Digital Publishing on October 18, 2024 and sell it today you would earn a total of 884.00 from holding COL Digital Publishing or generate 54.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
COL Digital Publishing vs. Jiangsu Broadcasting Cable
Performance |
| Timeline |
| COL Digital Publishing |
| Jiangsu Broadcasting |
COL Digital and Jiangsu Broadcasting Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COL Digital and Jiangsu Broadcasting
The main advantage of trading using opposite COL Digital and Jiangsu Broadcasting positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COL Digital position performs unexpectedly, Jiangsu Broadcasting 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 Jiangsu Broadcasting will offset losses from the drop in Jiangsu Broadcasting's long position.| COL Digital vs. Eastern Communications Co | COL Digital vs. Nanxing Furniture Machinery | COL Digital vs. Wuhan Yangtze Communication | COL Digital vs. Dongfeng Automobile Co |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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