Correlation Between Changjiang Publishing and Hua Xia
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By analyzing existing cross correlation between Changjiang Publishing Media and Hua Xia Bank, you can compare the effects of market volatilities on Changjiang Publishing and Hua Xia 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 Hua Xia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changjiang Publishing and Hua Xia.
Diversification Opportunities for Changjiang Publishing and Hua Xia
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Changjiang and Hua is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Changjiang Publishing Media and Hua Xia Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hua Xia Bank 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 Hua Xia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hua Xia Bank has no effect on the direction of Changjiang Publishing i.e., Changjiang Publishing and Hua Xia go up and down completely randomly.
Pair Corralation between Changjiang Publishing and Hua Xia
Assuming the 90 days trading horizon Changjiang Publishing is expected to generate 2.55 times less return on investment than Hua Xia. In addition to that, Changjiang Publishing is 1.34 times more volatile than Hua Xia Bank. It trades about 0.07 of its total potential returns per unit of risk. Hua Xia Bank is currently generating about 0.23 per unit of volatility. If you would invest 713.00 in Hua Xia Bank on September 14, 2024 and sell it today you would earn a total of 63.00 from holding Hua Xia Bank or generate 8.84% 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. Hua Xia Bank
Performance |
| Timeline |
| Changjiang Publishing |
| Hua Xia Bank |
Changjiang Publishing and Hua Xia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changjiang Publishing and Hua Xia
The main advantage of trading using opposite Changjiang Publishing and Hua Xia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changjiang Publishing position performs unexpectedly, Hua Xia 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 Hua Xia will offset losses from the drop in Hua Xia's long position.| Changjiang Publishing vs. Xizi Clean Energy | Changjiang Publishing vs. CITIC Guoan Information | Changjiang Publishing vs. Gansu Jiu Steel | Changjiang Publishing vs. Hang Xiao Steel |
| Hua Xia vs. Dymatic Chemicals | Hua Xia vs. Bomesc Offshore Engineering | Hua Xia vs. North Huajin Chemical | Hua Xia vs. Changjiang Publishing Media |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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