Correlation Between Changjiang Publishing and Shaanxi Meineng
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By analyzing existing cross correlation between Changjiang Publishing Media and Shaanxi Meineng Clean, you can compare the effects of market volatilities on Changjiang Publishing and Shaanxi Meineng 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 Changjiang Publishing with a short position of Shaanxi Meineng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changjiang Publishing and Shaanxi Meineng.
Diversification Opportunities for Changjiang Publishing and Shaanxi Meineng
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Changjiang and Shaanxi is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Changjiang Publishing Media and Shaanxi Meineng Clean in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shaanxi Meineng Clean and Changjiang Publishing 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 Changjiang Publishing Media are associated (or correlated) with Shaanxi Meineng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shaanxi Meineng Clean has no effect on the direction of Changjiang Publishing i.e., Changjiang Publishing and Shaanxi Meineng go up and down completely randomly.
Pair Corralation between Changjiang Publishing and Shaanxi Meineng
Assuming the 90 days trading horizon Changjiang Publishing Media is expected to under-perform the Shaanxi Meineng. But the stock apears to be less risky and, when comparing its historical volatility, Changjiang Publishing Media is 1.08 times less risky than Shaanxi Meineng. The stock trades about -0.26 of its potential returns per unit of risk. The Shaanxi Meineng Clean is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,238 in Shaanxi Meineng Clean on October 29, 2024 and sell it today you would lose (2.00) from holding Shaanxi Meineng Clean or give up 0.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changjiang Publishing Media vs. Shaanxi Meineng Clean
Performance |
| Timeline |
| Changjiang Publishing |
| Shaanxi Meineng Clean |
Changjiang Publishing and Shaanxi Meineng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changjiang Publishing and Shaanxi Meineng
The main advantage of trading using opposite Changjiang Publishing and Shaanxi Meineng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changjiang Publishing position performs unexpectedly, Shaanxi Meineng 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 Shaanxi Meineng will offset losses from the drop in Shaanxi Meineng's long position.| Changjiang Publishing vs. Kailong High Technology | Changjiang Publishing vs. Beijing Jiaman Dress | Changjiang Publishing vs. Heren Health Co | Changjiang Publishing vs. Shandong Sinoglory Health |
| Shaanxi Meineng vs. Xiamen Jihong Package | Shaanxi Meineng vs. Shantou Wanshun Package | Shaanxi Meineng vs. Cultural Investment Holdings | Shaanxi Meineng vs. Xiandai Investment 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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