Correlation Between Wuhan Yangtze and JiShi Media
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By analyzing existing cross correlation between Wuhan Yangtze Communication and JiShi Media Co, you can compare the effects of market volatilities on Wuhan Yangtze and JiShi 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 Wuhan Yangtze with a short position of JiShi Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wuhan Yangtze and JiShi Media.
Diversification Opportunities for Wuhan Yangtze and JiShi Media
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Wuhan and JiShi is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Wuhan Yangtze Communication and JiShi Media Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JiShi Media and Wuhan Yangtze 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 Wuhan Yangtze Communication are associated (or correlated) with JiShi Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JiShi Media has no effect on the direction of Wuhan Yangtze i.e., Wuhan Yangtze and JiShi Media go up and down completely randomly.
Pair Corralation between Wuhan Yangtze and JiShi Media
Assuming the 90 days trading horizon Wuhan Yangtze is expected to generate 1.16 times less return on investment than JiShi Media. But when comparing it to its historical volatility, Wuhan Yangtze Communication is 1.01 times less risky than JiShi Media. It trades about 0.07 of its potential returns per unit of risk. JiShi Media Co is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 142.00 in JiShi Media Co on October 14, 2024 and sell it today you would earn a total of 26.00 from holding JiShi Media Co or generate 18.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wuhan Yangtze Communication vs. JiShi Media Co
Performance |
| Timeline |
| Wuhan Yangtze Commun |
| JiShi Media |
Wuhan Yangtze and JiShi Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wuhan Yangtze and JiShi Media
The main advantage of trading using opposite Wuhan Yangtze and JiShi Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wuhan Yangtze position performs unexpectedly, JiShi 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 JiShi Media will offset losses from the drop in JiShi Media's long position.| Wuhan Yangtze vs. Chengdu Spaceon Electronics | Wuhan Yangtze vs. China Asset Management | Wuhan Yangtze vs. Ye Chiu Metal | Wuhan Yangtze vs. Huaxia Fund Management |
| JiShi Media vs. Shengda Mining Co | JiShi Media vs. Eastern Communications Co | JiShi Media vs. Marssenger Kitchenware Co | JiShi Media vs. Wuhan Yangtze Communication |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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