Correlation Between COL Digital and Shanghai
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By analyzing existing cross correlation between COL Digital Publishing and Shanghai MG Stationery, you can compare the effects of market volatilities on COL Digital and Shanghai 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 Shanghai. Check out your portfolio center. Please also check ongoing floating volatility patterns of COL Digital and Shanghai.
Diversification Opportunities for COL Digital and Shanghai
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between COL and Shanghai is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding COL Digital Publishing and Shanghai MG Stationery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai MG Stationery 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 Shanghai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai MG Stationery has no effect on the direction of COL Digital i.e., COL Digital and Shanghai go up and down completely randomly.
Pair Corralation between COL Digital and Shanghai
Assuming the 90 days trading horizon COL Digital Publishing is expected to generate 3.07 times more return on investment than Shanghai. However, COL Digital is 3.07 times more volatile than Shanghai MG Stationery. It trades about 0.18 of its potential returns per unit of risk. Shanghai MG Stationery is currently generating about -0.21 per unit of risk. If you would invest 2,445 in COL Digital Publishing on November 28, 2024 and sell it today you would earn a total of 269.00 from holding COL Digital Publishing or generate 11.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 94.12% |
| Values | Daily Returns |
COL Digital Publishing vs. Shanghai MG Stationery
Performance |
| Timeline |
| COL Digital Publishing |
| Shanghai MG Stationery |
COL Digital and Shanghai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COL Digital and Shanghai
The main advantage of trading using opposite COL Digital and Shanghai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COL Digital position performs unexpectedly, Shanghai 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 Shanghai will offset losses from the drop in Shanghai's long position.| COL Digital vs. Pengxin International Mining | COL Digital vs. Longjian Road Bridge | COL Digital vs. Tianjin Silvery Dragon | COL Digital vs. Sichuan Fulin Transportation |
| Shanghai vs. Bosera CMSK Industrial | Shanghai vs. Hengerda New Materials | Shanghai vs. JCHX Mining Management | Shanghai vs. Super Dragon Engineering Plastics |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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