Correlation Between China Merchants and Omnijoi Media
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By analyzing existing cross correlation between China Merchants Bank and Omnijoi Media Corp, you can compare the effects of market volatilities on China Merchants and Omnijoi Media 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 China Merchants with a short position of Omnijoi Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Merchants and Omnijoi Media.
Diversification Opportunities for China Merchants and Omnijoi Media
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and Omnijoi is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding China Merchants Bank and Omnijoi Media Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Omnijoi Media Corp and China Merchants 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 China Merchants Bank are associated (or correlated) with Omnijoi Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Omnijoi Media Corp has no effect on the direction of China Merchants i.e., China Merchants and Omnijoi Media go up and down completely randomly.
Pair Corralation between China Merchants and Omnijoi Media
Assuming the 90 days trading horizon China Merchants Bank is expected to under-perform the Omnijoi Media. But the stock apears to be less risky and, when comparing its historical volatility, China Merchants Bank is 3.22 times less risky than Omnijoi Media. The stock trades about -0.09 of its potential returns per unit of risk. The Omnijoi Media Corp is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 850.00 in Omnijoi Media Corp on September 1, 2024 and sell it today you would earn a total of 133.00 from holding Omnijoi Media Corp or generate 15.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Merchants Bank vs. Omnijoi Media Corp
Performance |
| Timeline |
| China Merchants Bank |
| Omnijoi Media Corp |
China Merchants and Omnijoi Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Merchants and Omnijoi Media
The main advantage of trading using opposite China Merchants and Omnijoi Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Merchants position performs unexpectedly, Omnijoi Media 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 Omnijoi Media will offset losses from the drop in Omnijoi Media's long position.| China Merchants vs. Yunnan Jianzhijia Health Chain | China Merchants vs. Mingchen Health Co | China Merchants vs. XinJiang GuoTong Pipeline | China Merchants vs. Healthcare Co |
| Omnijoi Media vs. Lutian Machinery Co | Omnijoi Media vs. China Longyuan Power | Omnijoi Media vs. PetroChina Co Ltd | Omnijoi Media vs. Bank of China |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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