Correlation Between Changjiang Publishing and China Fortune
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By analyzing existing cross correlation between Changjiang Publishing Media and China Fortune Land, you can compare the effects of market volatilities on Changjiang Publishing and China Fortune 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 Fortune. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changjiang Publishing and China Fortune.
Diversification Opportunities for Changjiang Publishing and China Fortune
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Changjiang and China is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Changjiang Publishing Media and China Fortune Land in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Fortune Land 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 Fortune. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Fortune Land has no effect on the direction of Changjiang Publishing i.e., Changjiang Publishing and China Fortune go up and down completely randomly.
Pair Corralation between Changjiang Publishing and China Fortune
Assuming the 90 days trading horizon Changjiang Publishing Media is expected to under-perform the China Fortune. But the stock apears to be less risky and, when comparing its historical volatility, Changjiang Publishing Media is 1.72 times less risky than China Fortune. The stock trades about -0.01 of its potential returns per unit of risk. The China Fortune Land is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 238.00 in China Fortune Land on August 31, 2024 and sell it today you would earn a total of 50.00 from holding China Fortune Land or generate 21.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changjiang Publishing Media vs. China Fortune Land
Performance |
| Timeline |
| Changjiang Publishing |
| China Fortune Land |
Changjiang Publishing and China Fortune Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changjiang Publishing and China Fortune
The main advantage of trading using opposite Changjiang Publishing and China Fortune positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changjiang Publishing position performs unexpectedly, China Fortune 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 Fortune will offset losses from the drop in China Fortune's long position.| Changjiang Publishing vs. BYD Co Ltd | Changjiang Publishing vs. Agricultural Bank of | Changjiang Publishing vs. Industrial and Commercial | Changjiang Publishing vs. China State Construction |
| China Fortune vs. Kweichow Moutai Co | China Fortune vs. Contemporary Amperex Technology | China Fortune vs. G bits Network Technology | China Fortune vs. BYD Co Ltd |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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