Correlation Between COL Digital and Southern PublishingMedia
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By analyzing existing cross correlation between COL Digital Publishing and Southern PublishingMedia Co, you can compare the effects of market volatilities on COL Digital and Southern PublishingMedia 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 Southern PublishingMedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of COL Digital and Southern PublishingMedia.
Diversification Opportunities for COL Digital and Southern PublishingMedia
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between COL and Southern is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding COL Digital Publishing and Southern PublishingMedia Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Southern PublishingMedia 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 Southern PublishingMedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Southern PublishingMedia has no effect on the direction of COL Digital i.e., COL Digital and Southern PublishingMedia go up and down completely randomly.
Pair Corralation between COL Digital and Southern PublishingMedia
Assuming the 90 days trading horizon COL Digital Publishing is expected to generate 1.88 times more return on investment than Southern PublishingMedia. However, COL Digital is 1.88 times more volatile than Southern PublishingMedia Co. It trades about 0.12 of its potential returns per unit of risk. Southern PublishingMedia Co is currently generating about 0.07 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
COL Digital Publishing vs. Southern PublishingMedia Co
Performance |
| Timeline |
| COL Digital Publishing |
| Southern PublishingMedia |
COL Digital and Southern PublishingMedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COL Digital and Southern PublishingMedia
The main advantage of trading using opposite COL Digital and Southern PublishingMedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COL Digital position performs unexpectedly, Southern PublishingMedia 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 Southern PublishingMedia will offset losses from the drop in Southern PublishingMedia'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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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