Correlation Between COL Digital and China Railway
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By analyzing existing cross correlation between COL Digital Publishing and China Railway Group, you can compare the effects of market volatilities on COL Digital and China Railway 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 China Railway. Check out your portfolio center. Please also check ongoing floating volatility patterns of COL Digital and China Railway.
Diversification Opportunities for COL Digital and China Railway
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between COL and China is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding COL Digital Publishing and China Railway Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Railway Group 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 China Railway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Railway Group has no effect on the direction of COL Digital i.e., COL Digital and China Railway go up and down completely randomly.
Pair Corralation between COL Digital and China Railway
Assuming the 90 days trading horizon COL Digital Publishing is expected to generate 2.46 times more return on investment than China Railway. However, COL Digital is 2.46 times more volatile than China Railway Group. It trades about 0.01 of its potential returns per unit of risk. China Railway Group is currently generating about 0.02 per unit of risk. If you would invest 2,702 in COL Digital Publishing on October 16, 2024 and sell it today you would lose (474.00) from holding COL Digital Publishing or give up 17.54% 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. China Railway Group
Performance |
| Timeline |
| COL Digital Publishing |
| China Railway Group |
COL Digital and China Railway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COL Digital and China Railway
The main advantage of trading using opposite COL Digital and China Railway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COL Digital position performs unexpectedly, China Railway 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 China Railway will offset losses from the drop in China Railway's long position.| COL Digital vs. Sunwave Communications Co | COL Digital vs. Dongfeng Automobile Co | COL Digital vs. Songz Automobile Air | COL Digital vs. Huizhou Speed Wireless |
| China Railway vs. Tangel Publishing | China Railway vs. COL Digital Publishing | China Railway vs. Shenzhen Clou Electronics | China Railway vs. Leyard Optoelectronic |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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