Correlation Between Changjiang Publishing and Hubeiyichang Transportation
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By analyzing existing cross correlation between Changjiang Publishing Media and Hubeiyichang Transportation Group, you can compare the effects of market volatilities on Changjiang Publishing and Hubeiyichang Transportation 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 Hubeiyichang Transportation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changjiang Publishing and Hubeiyichang Transportation.
Diversification Opportunities for Changjiang Publishing and Hubeiyichang Transportation
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Changjiang and Hubeiyichang is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Changjiang Publishing Media and Hubeiyichang Transportation Gr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubeiyichang Transportation 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 Hubeiyichang Transportation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubeiyichang Transportation has no effect on the direction of Changjiang Publishing i.e., Changjiang Publishing and Hubeiyichang Transportation go up and down completely randomly.
Pair Corralation between Changjiang Publishing and Hubeiyichang Transportation
Assuming the 90 days trading horizon Changjiang Publishing Media is expected to generate 1.42 times more return on investment than Hubeiyichang Transportation. However, Changjiang Publishing is 1.42 times more volatile than Hubeiyichang Transportation Group. It trades about 0.05 of its potential returns per unit of risk. Hubeiyichang Transportation Group is currently generating about 0.01 per unit of risk. If you would invest 548.00 in Changjiang Publishing Media on September 3, 2024 and sell it today you would earn a total of 307.00 from holding Changjiang Publishing Media or generate 56.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changjiang Publishing Media vs. Hubeiyichang Transportation Gr
Performance |
| Timeline |
| Changjiang Publishing |
| Hubeiyichang Transportation |
Changjiang Publishing and Hubeiyichang Transportation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changjiang Publishing and Hubeiyichang Transportation
The main advantage of trading using opposite Changjiang Publishing and Hubeiyichang Transportation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changjiang Publishing position performs unexpectedly, Hubeiyichang Transportation 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 Hubeiyichang Transportation will offset losses from the drop in Hubeiyichang Transportation's long position.| Changjiang Publishing vs. Gansu Jiu Steel | Changjiang Publishing vs. Ming Yang Smart | Changjiang Publishing vs. Aba Chemicals Corp | Changjiang Publishing vs. Loctek Ergonomic Technology |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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