Correlation Between Tonghua Grape and COL Digital
Specify exactly 2 symbols:
By analyzing existing cross correlation between Tonghua Grape Wine and COL Digital Publishing, you can compare the effects of market volatilities on Tonghua Grape 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 Tonghua Grape with a short position of COL Digital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tonghua Grape and COL Digital.
Diversification Opportunities for Tonghua Grape and COL Digital
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tonghua and COL is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Tonghua Grape Wine 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 Tonghua Grape 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 Tonghua Grape Wine 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 Tonghua Grape i.e., Tonghua Grape and COL Digital go up and down completely randomly.
Pair Corralation between Tonghua Grape and COL Digital
Assuming the 90 days trading horizon Tonghua Grape is expected to generate 1.33 times less return on investment than COL Digital. But when comparing it to its historical volatility, Tonghua Grape Wine is 2.0 times less risky than COL Digital. It trades about 0.08 of its potential returns per unit of risk. COL Digital Publishing is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 2,158 in COL Digital Publishing on September 27, 2024 and sell it today you would earn a total of 379.00 from holding COL Digital Publishing or generate 17.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tonghua Grape Wine vs. COL Digital Publishing
Performance |
| Timeline |
| Tonghua Grape Wine |
| COL Digital Publishing |
Tonghua Grape and COL Digital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tonghua Grape and COL Digital
The main advantage of trading using opposite Tonghua Grape and COL Digital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tonghua Grape 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.| Tonghua Grape vs. Wintao Communications Co | Tonghua Grape vs. Shanghai CEO Environmental | Tonghua Grape vs. CICC Fund Management | Tonghua Grape vs. Qingdao Hi Tech Moulds |
| COL Digital vs. Jiugui Liquor Co | COL Digital vs. Zhongrun Resources Investment | COL Digital vs. Nuode Investment Co | COL Digital vs. Postal Savings Bank |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |