Correlation Between COL Digital and Jiangxi JDL
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By analyzing existing cross correlation between COL Digital Publishing and Jiangxi JDL Environmental, you can compare the effects of market volatilities on COL Digital and Jiangxi JDL 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 Jiangxi JDL. Check out your portfolio center. Please also check ongoing floating volatility patterns of COL Digital and Jiangxi JDL.
Diversification Opportunities for COL Digital and Jiangxi JDL
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between COL and Jiangxi is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding COL Digital Publishing and Jiangxi JDL Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi JDL Environmental 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 Jiangxi JDL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangxi JDL Environmental has no effect on the direction of COL Digital i.e., COL Digital and Jiangxi JDL go up and down completely randomly.
Pair Corralation between COL Digital and Jiangxi JDL
Assuming the 90 days trading horizon COL Digital Publishing is expected to generate 2.28 times more return on investment than Jiangxi JDL. However, COL Digital is 2.28 times more volatile than Jiangxi JDL Environmental. It trades about 0.18 of its potential returns per unit of risk. Jiangxi JDL Environmental is currently generating about 0.16 per unit of risk. If you would invest 1,668 in COL Digital Publishing on August 29, 2024 and sell it today you would earn a total of 1,175 from holding COL Digital Publishing or generate 70.44% 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. Jiangxi JDL Environmental
Performance |
| Timeline |
| COL Digital Publishing |
| Jiangxi JDL Environmental |
COL Digital and Jiangxi JDL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COL Digital and Jiangxi JDL
The main advantage of trading using opposite COL Digital and Jiangxi JDL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COL Digital position performs unexpectedly, Jiangxi JDL 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 Jiangxi JDL will offset losses from the drop in Jiangxi JDL'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 |
| Jiangxi JDL vs. PetroChina Co Ltd | Jiangxi JDL vs. China State Construction | Jiangxi JDL vs. China Mobile Limited | Jiangxi JDL vs. Industrial and Commercial |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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