Correlation Between Chengdu Kanghua and COL Digital
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By analyzing existing cross correlation between Chengdu Kanghua Biological and COL Digital Publishing, you can compare the effects of market volatilities on Chengdu Kanghua and COL Digital 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 Chengdu Kanghua with a short position of COL Digital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu Kanghua and COL Digital.
Diversification Opportunities for Chengdu Kanghua and COL Digital
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Chengdu and COL is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu Kanghua Biological and COL Digital Publishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COL Digital Publishing and Chengdu Kanghua 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 Chengdu Kanghua Biological are associated (or correlated) with COL Digital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COL Digital Publishing has no effect on the direction of Chengdu Kanghua i.e., Chengdu Kanghua and COL Digital go up and down completely randomly.
Pair Corralation between Chengdu Kanghua and COL Digital
Assuming the 90 days trading horizon Chengdu Kanghua Biological is expected to under-perform the COL Digital. But the stock apears to be less risky and, when comparing its historical volatility, Chengdu Kanghua Biological is 1.58 times less risky than COL Digital. The stock trades about -0.2 of its potential returns per unit of risk. The COL Digital Publishing is currently generating about -0.11 of returns per unit of risk over similar time horizon. If you would invest 3,285 in COL Digital Publishing on August 28, 2024 and sell it today you would lose (414.00) from holding COL Digital Publishing or give up 12.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengdu Kanghua Biological vs. COL Digital Publishing
Performance |
| Timeline |
| Chengdu Kanghua Biol |
| COL Digital Publishing |
Chengdu Kanghua and COL Digital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu Kanghua and COL Digital
The main advantage of trading using opposite Chengdu Kanghua and COL Digital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu Kanghua position performs unexpectedly, COL Digital 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 COL Digital will offset losses from the drop in COL Digital's long position.| Chengdu Kanghua vs. Henzhen Zhaowei Machinery | Chengdu Kanghua vs. Jiangsu Xinri E Vehicle | Chengdu Kanghua vs. Huasi Agricultural Development | Chengdu Kanghua vs. Hunan Tyen Machinery |
| COL Digital vs. Jointo Energy Investment | COL Digital vs. Hubei Geoway Investment | COL Digital vs. Harbin Hatou Investment | COL Digital vs. Harvest Fund Management |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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