Correlation Between COL Digital and Great Sun
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By analyzing existing cross correlation between COL Digital Publishing and Great Sun Foods Co, you can compare the effects of market volatilities on COL Digital and Great Sun 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 Great Sun. Check out your portfolio center. Please also check ongoing floating volatility patterns of COL Digital and Great Sun.
Diversification Opportunities for COL Digital and Great Sun
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between COL and Great is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding COL Digital Publishing and Great Sun Foods Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Great Sun Foods 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 Great Sun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Great Sun Foods has no effect on the direction of COL Digital i.e., COL Digital and Great Sun go up and down completely randomly.
Pair Corralation between COL Digital and Great Sun
Assuming the 90 days trading horizon COL Digital Publishing is expected to generate 1.5 times more return on investment than Great Sun. However, COL Digital is 1.5 times more volatile than Great Sun Foods Co. It trades about 0.19 of its potential returns per unit of risk. Great Sun Foods Co is currently generating about 0.18 per unit of risk. If you would invest 1,705 in COL Digital Publishing on September 3, 2024 and sell it today you would earn a total of 1,333 from holding COL Digital Publishing or generate 78.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
COL Digital Publishing vs. Great Sun Foods Co
Performance |
| Timeline |
| COL Digital Publishing |
| Great Sun Foods |
COL Digital and Great Sun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COL Digital and Great Sun
The main advantage of trading using opposite COL Digital and Great Sun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COL Digital position performs unexpectedly, Great Sun 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 Great Sun will offset losses from the drop in Great Sun's long position.| COL Digital vs. Gansu Jiu Steel | COL Digital vs. Ming Yang Smart | COL Digital vs. Aba Chemicals Corp | COL Digital vs. Loctek Ergonomic Technology |
| Great Sun vs. Beijing Wantai Biological | Great Sun vs. Aluminum Corp of | Great Sun vs. COL Digital Publishing | Great Sun vs. Shaanxi Meineng Clean |
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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