Correlation Between COL Digital and Liaoning Port
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By analyzing existing cross correlation between COL Digital Publishing and Liaoning Port Co, you can compare the effects of market volatilities on COL Digital and Liaoning Port 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 Liaoning Port. Check out your portfolio center. Please also check ongoing floating volatility patterns of COL Digital and Liaoning Port.
Diversification Opportunities for COL Digital and Liaoning Port
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between COL and Liaoning is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding COL Digital Publishing and Liaoning Port Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Liaoning Port 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 Liaoning Port. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Liaoning Port has no effect on the direction of COL Digital i.e., COL Digital and Liaoning Port go up and down completely randomly.
Pair Corralation between COL Digital and Liaoning Port
Assuming the 90 days trading horizon COL Digital Publishing is expected to generate 2.55 times more return on investment than Liaoning Port. However, COL Digital is 2.55 times more volatile than Liaoning Port Co. It trades about 0.07 of its potential returns per unit of risk. Liaoning Port Co is currently generating about 0.06 per unit of risk. If you would invest 2,096 in COL Digital Publishing on August 27, 2024 and sell it today you would earn a total of 687.00 from holding COL Digital Publishing or generate 32.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
COL Digital Publishing vs. Liaoning Port Co
Performance |
| Timeline |
| COL Digital Publishing |
| Liaoning Port |
COL Digital and Liaoning Port Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COL Digital and Liaoning Port
The main advantage of trading using opposite COL Digital and Liaoning Port positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COL Digital position performs unexpectedly, Liaoning Port 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 Liaoning Port will offset losses from the drop in Liaoning Port's long position.| COL Digital vs. Jointo Energy Investment | COL Digital vs. Hubei Geoway Investment | COL Digital vs. Harbin Hatou Investment | COL Digital vs. Harvest Fund Management |
| Liaoning Port vs. Industrial and Commercial | Liaoning Port vs. Agricultural Bank of | Liaoning Port vs. China Construction Bank | Liaoning Port vs. Bank of China |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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