Correlation Between COL Digital and Tianfeng Securities
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By analyzing existing cross correlation between COL Digital Publishing and Tianfeng Securities Co, you can compare the effects of market volatilities on COL Digital and Tianfeng Securities 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 Tianfeng Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of COL Digital and Tianfeng Securities.
Diversification Opportunities for COL Digital and Tianfeng Securities
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between COL and Tianfeng is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding COL Digital Publishing and Tianfeng Securities Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianfeng Securities 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 Tianfeng Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianfeng Securities has no effect on the direction of COL Digital i.e., COL Digital and Tianfeng Securities go up and down completely randomly.
Pair Corralation between COL Digital and Tianfeng Securities
Assuming the 90 days trading horizon COL Digital Publishing is expected to generate 1.11 times more return on investment than Tianfeng Securities. However, COL Digital is 1.11 times more volatile than Tianfeng Securities Co. It trades about 0.04 of its potential returns per unit of risk. Tianfeng Securities Co is currently generating about -0.17 per unit of risk. If you would invest 2,937 in COL Digital Publishing on August 31, 2024 and sell it today you would earn a total of 55.00 from holding COL Digital Publishing or generate 1.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
COL Digital Publishing vs. Tianfeng Securities Co
Performance |
| Timeline |
| COL Digital Publishing |
| Tianfeng Securities |
COL Digital and Tianfeng Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COL Digital and Tianfeng Securities
The main advantage of trading using opposite COL Digital and Tianfeng Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COL Digital position performs unexpectedly, Tianfeng Securities 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 Tianfeng Securities will offset losses from the drop in Tianfeng Securities' long position.| COL Digital vs. BYD Co Ltd | COL Digital vs. Agricultural Bank of | COL Digital vs. Industrial and Commercial | COL Digital vs. China State Construction |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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