Correlation Between Hubei Geoway and COL Digital
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By analyzing existing cross correlation between Hubei Geoway Investment and COL Digital Publishing, you can compare the effects of market volatilities on Hubei Geoway 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 Hubei Geoway with a short position of COL Digital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubei Geoway and COL Digital.
Diversification Opportunities for Hubei Geoway and COL Digital
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Hubei and COL is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Hubei Geoway Investment 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 Hubei Geoway 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 Hubei Geoway Investment 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 Hubei Geoway i.e., Hubei Geoway and COL Digital go up and down completely randomly.
Pair Corralation between Hubei Geoway and COL Digital
Assuming the 90 days trading horizon Hubei Geoway Investment is expected to under-perform the COL Digital. But the stock apears to be less risky and, when comparing its historical volatility, Hubei Geoway Investment is 1.99 times less risky than COL Digital. The stock trades about -0.03 of its potential returns per unit of risk. The COL Digital Publishing is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,310 in COL Digital Publishing on November 7, 2024 and sell it today you would earn a total of 1,135 from holding COL Digital Publishing or generate 86.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hubei Geoway Investment vs. COL Digital Publishing
Performance |
| Timeline |
| Hubei Geoway Investment |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
| COL Digital Publishing |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Hubei Geoway and COL Digital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubei Geoway and COL Digital
The main advantage of trading using opposite Hubei Geoway and COL Digital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubei Geoway 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.The idea behind Hubei Geoway Investment and COL Digital Publishing 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 CEOs Directory module to screen CEOs from public companies around the world.
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