Correlation Between Hua Xia and Changjiang Publishing
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By analyzing existing cross correlation between Hua Xia Bank and Changjiang Publishing Media, you can compare the effects of market volatilities on Hua Xia and Changjiang Publishing 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 Hua Xia with a short position of Changjiang Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hua Xia and Changjiang Publishing.
Diversification Opportunities for Hua Xia and Changjiang Publishing
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hua and Changjiang is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Hua Xia Bank and Changjiang Publishing Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changjiang Publishing and Hua Xia 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 Hua Xia Bank are associated (or correlated) with Changjiang Publishing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changjiang Publishing has no effect on the direction of Hua Xia i.e., Hua Xia and Changjiang Publishing go up and down completely randomly.
Pair Corralation between Hua Xia and Changjiang Publishing
Assuming the 90 days trading horizon Hua Xia Bank is expected to generate 0.84 times more return on investment than Changjiang Publishing. However, Hua Xia Bank is 1.18 times less risky than Changjiang Publishing. It trades about 0.09 of its potential returns per unit of risk. Changjiang Publishing Media is currently generating about 0.01 per unit of risk. If you would invest 615.00 in Hua Xia Bank on October 13, 2024 and sell it today you would earn a total of 133.00 from holding Hua Xia Bank or generate 21.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hua Xia Bank vs. Changjiang Publishing Media
Performance |
| Timeline |
| Hua Xia Bank |
| Changjiang Publishing |
Hua Xia and Changjiang Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hua Xia and Changjiang Publishing
The main advantage of trading using opposite Hua Xia and Changjiang Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hua Xia position performs unexpectedly, Changjiang Publishing 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 Changjiang Publishing will offset losses from the drop in Changjiang Publishing's long position.| Hua Xia vs. TongFu Microelectronics Co | Hua Xia vs. Shanghai Rightongene Biotechnology | Hua Xia vs. Maccura Biotechnology Co | Hua Xia vs. Jiangsu Jinling Sports |
| Changjiang Publishing vs. BeiGene | Changjiang Publishing vs. Kweichow Moutai Co | Changjiang Publishing vs. Beijing Roborock Technology | Changjiang Publishing vs. G bits Network Technology |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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