Correlation Between Changjiang Publishing and Chinese Universe
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By analyzing existing cross correlation between Changjiang Publishing Media and Chinese Universe Publishing, you can compare the effects of market volatilities on Changjiang Publishing and Chinese Universe 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 Chinese Universe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changjiang Publishing and Chinese Universe.
Diversification Opportunities for Changjiang Publishing and Chinese Universe
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Changjiang and Chinese is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Changjiang Publishing Media and Chinese Universe Publishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chinese Universe Pub 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 Chinese Universe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chinese Universe Pub has no effect on the direction of Changjiang Publishing i.e., Changjiang Publishing and Chinese Universe go up and down completely randomly.
Pair Corralation between Changjiang Publishing and Chinese Universe
Assuming the 90 days trading horizon Changjiang Publishing Media is expected to generate 0.79 times more return on investment than Chinese Universe. However, Changjiang Publishing Media is 1.27 times less risky than Chinese Universe. It trades about 0.0 of its potential returns per unit of risk. Chinese Universe Publishing is currently generating about -0.02 per unit of risk. If you would invest 862.00 in Changjiang Publishing Media on August 28, 2024 and sell it today you would lose (18.00) from holding Changjiang Publishing Media or give up 2.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changjiang Publishing Media vs. Chinese Universe Publishing
Performance |
| Timeline |
| Changjiang Publishing |
| Chinese Universe Pub |
Changjiang Publishing and Chinese Universe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changjiang Publishing and Chinese Universe
The main advantage of trading using opposite Changjiang Publishing and Chinese Universe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changjiang Publishing position performs unexpectedly, Chinese Universe 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 Chinese Universe will offset losses from the drop in Chinese Universe's long position.| Changjiang Publishing vs. China State Construction | Changjiang Publishing vs. Huafa Industrial Co | Changjiang Publishing vs. China International Capital | Changjiang Publishing vs. Kweichow Moutai Co |
| Chinese Universe vs. China State Construction | Chinese Universe vs. Huafa Industrial Co | Chinese Universe vs. China International Capital | Chinese Universe vs. Kweichow Moutai 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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