Correlation Between Chongqing Brewery and China Publishing
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By analyzing existing cross correlation between Chongqing Brewery Co and China Publishing Media, you can compare the effects of market volatilities on Chongqing Brewery and China 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 Chongqing Brewery with a short position of China Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chongqing Brewery and China Publishing.
Diversification Opportunities for Chongqing Brewery and China Publishing
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Chongqing and China is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Chongqing Brewery Co and China Publishing Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Publishing Media and Chongqing Brewery 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 Chongqing Brewery Co are associated (or correlated) with China Publishing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Publishing Media has no effect on the direction of Chongqing Brewery i.e., Chongqing Brewery and China Publishing go up and down completely randomly.
Pair Corralation between Chongqing Brewery and China Publishing
Assuming the 90 days trading horizon Chongqing Brewery Co is expected to under-perform the China Publishing. But the stock apears to be less risky and, when comparing its historical volatility, Chongqing Brewery Co is 1.58 times less risky than China Publishing. The stock trades about -0.06 of its potential returns per unit of risk. The China Publishing Media is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 494.00 in China Publishing Media on October 16, 2024 and sell it today you would earn a total of 161.00 from holding China Publishing Media or generate 32.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chongqing Brewery Co vs. China Publishing Media
Performance |
| Timeline |
| Chongqing Brewery |
| China Publishing Media |
Chongqing Brewery and China Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chongqing Brewery and China Publishing
The main advantage of trading using opposite Chongqing Brewery and China Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chongqing Brewery position performs unexpectedly, China 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 China Publishing will offset losses from the drop in China Publishing's long position.| Chongqing Brewery vs. Kunwu Jiuding Investment | Chongqing Brewery vs. Kingsignal Technology Co | Chongqing Brewery vs. Luyin Investment Group | Chongqing Brewery vs. Hunan Investment Group |
| China Publishing vs. Xiangyu Medical Co | China Publishing vs. Holitech Technology Co | China Publishing vs. Chongqing Brewery Co | China Publishing vs. Sinofibers Technology 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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