Correlation Between Chinese Universe and Wasu Media
Specify exactly 2 symbols:
By analyzing existing cross correlation between Chinese Universe Publishing and Wasu Media Holding, you can compare the effects of market volatilities on Chinese Universe and Wasu 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 Chinese Universe with a short position of Wasu Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chinese Universe and Wasu Media.
Diversification Opportunities for Chinese Universe and Wasu Media
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Chinese and Wasu is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Chinese Universe Publishing and Wasu Media Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wasu Media Holding and Chinese Universe 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 Chinese Universe Publishing are associated (or correlated) with Wasu Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wasu Media Holding has no effect on the direction of Chinese Universe i.e., Chinese Universe and Wasu Media go up and down completely randomly.
Pair Corralation between Chinese Universe and Wasu Media
Assuming the 90 days trading horizon Chinese Universe Publishing is expected to under-perform the Wasu Media. But the stock apears to be less risky and, when comparing its historical volatility, Chinese Universe Publishing is 1.02 times less risky than Wasu Media. The stock trades about -0.02 of its potential returns per unit of risk. The Wasu Media Holding is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 601.00 in Wasu Media Holding on November 7, 2024 and sell it today you would earn a total of 118.00 from holding Wasu Media Holding or generate 19.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chinese Universe Publishing vs. Wasu Media Holding
Performance |
| Timeline |
| Chinese Universe Pub |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Wasu Media Holding |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Chinese Universe and Wasu Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chinese Universe and Wasu Media
The main advantage of trading using opposite Chinese Universe and Wasu Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chinese Universe position performs unexpectedly, Wasu 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 Wasu Media will offset losses from the drop in Wasu Media's long position.The idea behind Chinese Universe Publishing and Wasu Media Holding pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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