Correlation Between COL Digital and China Satellite
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By analyzing existing cross correlation between COL Digital Publishing and China Satellite Communications, you can compare the effects of market volatilities on COL Digital and China Satellite 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 Satellite. Check out your portfolio center. Please also check ongoing floating volatility patterns of COL Digital and China Satellite.
Diversification Opportunities for COL Digital and China Satellite
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between COL and China is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding COL Digital Publishing and China Satellite Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Satellite Comm 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 Satellite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Satellite Comm has no effect on the direction of COL Digital i.e., COL Digital and China Satellite go up and down completely randomly.
Pair Corralation between COL Digital and China Satellite
Assuming the 90 days trading horizon COL Digital Publishing is expected to generate 1.68 times more return on investment than China Satellite. However, COL Digital is 1.68 times more volatile than China Satellite Communications. It trades about 0.06 of its potential returns per unit of risk. China Satellite Communications is currently generating about 0.06 per unit of risk. If you would invest 975.00 in COL Digital Publishing on September 28, 2024 and sell it today you would earn a total of 1,605 from holding COL Digital Publishing or generate 164.62% 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. China Satellite Communications
Performance |
| Timeline |
| COL Digital Publishing |
| China Satellite Comm |
COL Digital and China Satellite Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COL Digital and China Satellite
The main advantage of trading using opposite COL Digital and China Satellite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COL Digital position performs unexpectedly, China Satellite 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 Satellite will offset losses from the drop in China Satellite's long position.| COL Digital vs. Kweichow Moutai Co | COL Digital vs. Contemporary Amperex Technology | COL Digital vs. G bits Network Technology | COL Digital vs. Beijing Roborock Technology |
| China Satellite vs. Dongfeng Automobile Co | China Satellite vs. Wintao Communications Co | China Satellite vs. Eastern Communications Co | China Satellite vs. Leaguer Shenzhen MicroElectronics |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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