Correlation Between COL Digital and Northern United
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By analyzing existing cross correlation between COL Digital Publishing and Northern United Publishing, you can compare the effects of market volatilities on COL Digital and Northern United 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 Northern United. Check out your portfolio center. Please also check ongoing floating volatility patterns of COL Digital and Northern United.
Diversification Opportunities for COL Digital and Northern United
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between COL and Northern is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding COL Digital Publishing and Northern United Publishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Northern United Publ 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 Northern United. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Northern United Publ has no effect on the direction of COL Digital i.e., COL Digital and Northern United go up and down completely randomly.
Pair Corralation between COL Digital and Northern United
Assuming the 90 days trading horizon COL Digital Publishing is expected to generate 1.38 times more return on investment than Northern United. However, COL Digital is 1.38 times more volatile than Northern United Publishing. It trades about -0.04 of its potential returns per unit of risk. Northern United Publishing is currently generating about -0.07 per unit of risk. If you would invest 2,585 in COL Digital Publishing on October 28, 2024 and sell it today you would lose (96.00) from holding COL Digital Publishing or give up 3.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
COL Digital Publishing vs. Northern United Publishing
Performance |
| Timeline |
| COL Digital Publishing |
| Northern United Publ |
COL Digital and Northern United Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COL Digital and Northern United
The main advantage of trading using opposite COL Digital and Northern United positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COL Digital position performs unexpectedly, Northern United 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 Northern United will offset losses from the drop in Northern United's long position.| COL Digital vs. Hunan Investment Group | COL Digital vs. Hubei Geoway Investment | COL Digital vs. Zhejiang Construction Investment | COL Digital vs. Nexchip Semiconductor Corp |
| Northern United vs. Jahen Household Products | Northern United vs. Olympic Circuit Technology | Northern United vs. Guangzhou Seagull Kitchen | Northern United vs. Jiujiang Shanshui Technology |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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