Correlation Between Hunan Tyen and COL Digital
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By analyzing existing cross correlation between Hunan Tyen Machinery and COL Digital Publishing, you can compare the effects of market volatilities on Hunan Tyen 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 Hunan Tyen with a short position of COL Digital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunan Tyen and COL Digital.
Diversification Opportunities for Hunan Tyen and COL Digital
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hunan and COL is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Hunan Tyen Machinery 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 Hunan Tyen 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 Hunan Tyen Machinery 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 Hunan Tyen i.e., Hunan Tyen and COL Digital go up and down completely randomly.
Pair Corralation between Hunan Tyen and COL Digital
Assuming the 90 days trading horizon Hunan Tyen is expected to generate 5.73 times less return on investment than COL Digital. But when comparing it to its historical volatility, Hunan Tyen Machinery is 1.85 times less risky than COL Digital. It trades about 0.02 of its potential returns per unit of risk. COL Digital Publishing is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,041 in COL Digital Publishing on October 16, 2024 and sell it today you would earn a total of 1,347 from holding COL Digital Publishing or generate 129.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hunan Tyen Machinery vs. COL Digital Publishing
Performance |
| Timeline |
| Hunan Tyen Machinery |
| COL Digital Publishing |
Hunan Tyen and COL Digital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunan Tyen and COL Digital
The main advantage of trading using opposite Hunan Tyen and COL Digital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunan Tyen 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.| Hunan Tyen vs. Kuangda Technology Group | Hunan Tyen vs. Cabio Biotech Wuhan | Hunan Tyen vs. CGN Nuclear Technology | Hunan Tyen vs. XiaMen HongXin Electron tech |
| COL Digital vs. Shantui Construction Machinery | COL Digital vs. Gansu Huangtai Wine marketing | COL Digital vs. Hunan Tyen Machinery | COL Digital vs. Beijing Bewinner Communications |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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