Correlation Between Chinese Universe and China Publishing
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By analyzing existing cross correlation between Chinese Universe Publishing and China Publishing Media, you can compare the effects of market volatilities on Chinese Universe 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 Chinese Universe with a short position of China Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chinese Universe and China Publishing.
Diversification Opportunities for Chinese Universe and China Publishing
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Chinese and China is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Chinese Universe Publishing 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 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 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 Chinese Universe i.e., Chinese Universe and China Publishing go up and down completely randomly.
Pair Corralation between Chinese Universe and China Publishing
Assuming the 90 days trading horizon Chinese Universe Publishing is expected to under-perform the China Publishing. But the stock apears to be less risky and, when comparing its historical volatility, Chinese Universe Publishing is 1.93 times less risky than China Publishing. The stock trades about -0.33 of its potential returns per unit of risk. The China Publishing Media is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 706.00 in China Publishing Media on August 28, 2024 and sell it today you would earn a total of 132.00 from holding China Publishing Media or generate 18.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Chinese Universe Publishing vs. China Publishing Media
Performance |
| Timeline |
| Chinese Universe Pub |
| China Publishing Media |
Chinese Universe and China Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chinese Universe and China Publishing
The main advantage of trading using opposite Chinese Universe and China Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chinese Universe 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.| Chinese Universe vs. China State Construction | Chinese Universe vs. Huafa Industrial Co | Chinese Universe vs. China International Capital | Chinese Universe vs. Kweichow Moutai Co |
| China Publishing vs. Eit Environmental Development | China Publishing vs. Gansu Jiu Steel | China Publishing vs. Hang Xiao Steel | China Publishing vs. Jiugui Liquor 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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