Correlation Between Changjiang Publishing and China Merchants
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By analyzing existing cross correlation between Changjiang Publishing Media and China Merchants Shekou, you can compare the effects of market volatilities on Changjiang Publishing and China Merchants 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 China Merchants. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changjiang Publishing and China Merchants.
Diversification Opportunities for Changjiang Publishing and China Merchants
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Changjiang and China is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Changjiang Publishing Media and China Merchants Shekou in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Merchants Shekou 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 China Merchants. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Merchants Shekou has no effect on the direction of Changjiang Publishing i.e., Changjiang Publishing and China Merchants go up and down completely randomly.
Pair Corralation between Changjiang Publishing and China Merchants
Assuming the 90 days trading horizon Changjiang Publishing Media is expected to generate 1.22 times more return on investment than China Merchants. However, Changjiang Publishing is 1.22 times more volatile than China Merchants Shekou. It trades about -0.14 of its potential returns per unit of risk. China Merchants Shekou is currently generating about -0.41 per unit of risk. If you would invest 922.00 in Changjiang Publishing Media on October 12, 2024 and sell it today you would lose (48.00) from holding Changjiang Publishing Media or give up 5.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changjiang Publishing Media vs. China Merchants Shekou
Performance |
| Timeline |
| Changjiang Publishing |
| China Merchants Shekou |
Changjiang Publishing and China Merchants Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changjiang Publishing and China Merchants
The main advantage of trading using opposite Changjiang Publishing and China Merchants positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changjiang Publishing position performs unexpectedly, China Merchants 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 Merchants will offset losses from the drop in China Merchants' long position.| Changjiang Publishing vs. Jiangsu Phoenix Publishing | Changjiang Publishing vs. Xinhua Winshare Publishing | Changjiang Publishing vs. China Publishing Media | Changjiang Publishing vs. Eastern Air Logistics |
| China Merchants vs. China Publishing Media | China Merchants vs. Changjiang Publishing Media | China Merchants vs. Thinkingdom Media Group | China Merchants vs. COL Digital Publishing |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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