Correlation Between COL Digital and Suzhou Weizhixiang
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By analyzing existing cross correlation between COL Digital Publishing and Suzhou Weizhixiang Food, you can compare the effects of market volatilities on COL Digital and Suzhou Weizhixiang 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 Suzhou Weizhixiang. Check out your portfolio center. Please also check ongoing floating volatility patterns of COL Digital and Suzhou Weizhixiang.
Diversification Opportunities for COL Digital and Suzhou Weizhixiang
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between COL and Suzhou is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding COL Digital Publishing and Suzhou Weizhixiang Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Weizhixiang Food 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 Suzhou Weizhixiang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou Weizhixiang Food has no effect on the direction of COL Digital i.e., COL Digital and Suzhou Weizhixiang go up and down completely randomly.
Pair Corralation between COL Digital and Suzhou Weizhixiang
Assuming the 90 days trading horizon COL Digital Publishing is expected to under-perform the Suzhou Weizhixiang. In addition to that, COL Digital is 1.42 times more volatile than Suzhou Weizhixiang Food. It trades about -0.12 of its total potential returns per unit of risk. Suzhou Weizhixiang Food is currently generating about 0.11 per unit of volatility. If you would invest 2,150 in Suzhou Weizhixiang Food on August 29, 2024 and sell it today you would earn a total of 153.00 from holding Suzhou Weizhixiang Food or generate 7.12% 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. Suzhou Weizhixiang Food
Performance |
| Timeline |
| COL Digital Publishing |
| Suzhou Weizhixiang Food |
COL Digital and Suzhou Weizhixiang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COL Digital and Suzhou Weizhixiang
The main advantage of trading using opposite COL Digital and Suzhou Weizhixiang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COL Digital position performs unexpectedly, Suzhou Weizhixiang 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 Suzhou Weizhixiang will offset losses from the drop in Suzhou Weizhixiang's long position.| COL Digital vs. Industrial and Commercial | COL Digital vs. Agricultural Bank of | COL Digital vs. China Construction Bank | COL Digital vs. Bank of China |
| Suzhou Weizhixiang vs. China Petroleum Chemical | Suzhou Weizhixiang vs. PetroChina Co Ltd | Suzhou Weizhixiang vs. China State Construction | Suzhou Weizhixiang vs. China Railway Group |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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