Correlation Between COL Digital and Shanghai Bailian
Specify exactly 2 symbols:
By analyzing existing cross correlation between COL Digital Publishing and Shanghai Bailian Group, you can compare the effects of market volatilities on COL Digital and Shanghai Bailian 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 Bailian. Check out your portfolio center. Please also check ongoing floating volatility patterns of COL Digital and Shanghai Bailian.
Diversification Opportunities for COL Digital and Shanghai Bailian
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between COL and Shanghai is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding COL Digital Publishing and Shanghai Bailian Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Bailian 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 Bailian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Bailian has no effect on the direction of COL Digital i.e., COL Digital and Shanghai Bailian go up and down completely randomly.
Pair Corralation between COL Digital and Shanghai Bailian
Assuming the 90 days trading horizon COL Digital Publishing is expected to generate 2.13 times more return on investment than Shanghai Bailian. However, COL Digital is 2.13 times more volatile than Shanghai Bailian Group. It trades about 0.12 of its potential returns per unit of risk. Shanghai Bailian Group is currently generating about 0.23 per unit of risk. If you would invest 2,438 in COL Digital Publishing on August 30, 2024 and sell it today you would earn a total of 641.00 from holding COL Digital Publishing or generate 26.29% 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. Shanghai Bailian Group
Performance |
| Timeline |
| COL Digital Publishing |
| Shanghai Bailian |
COL Digital and Shanghai Bailian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COL Digital and Shanghai Bailian
The main advantage of trading using opposite COL Digital and Shanghai Bailian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COL Digital position performs unexpectedly, Shanghai Bailian 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 Bailian will offset losses from the drop in Shanghai Bailian's long position.| COL Digital vs. Zhongrun Resources Investment | COL Digital vs. Vanfund Urban Investment | COL Digital vs. Metro Investment Development | COL Digital vs. Longmaster Information Tech |
| Shanghai Bailian vs. Jinhe Biotechnology Co | Shanghai Bailian vs. Changchun BCHT Biotechnology | Shanghai Bailian vs. Bomesc Offshore Engineering | Shanghai Bailian vs. Healthcare Co |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |