Correlation Between Changjiang Publishing and Changchun Faway
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By analyzing existing cross correlation between Changjiang Publishing Media and Changchun Faway Automobile, you can compare the effects of market volatilities on Changjiang Publishing and Changchun Faway 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 Changchun Faway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changjiang Publishing and Changchun Faway.
Diversification Opportunities for Changjiang Publishing and Changchun Faway
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Changjiang and Changchun is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Changjiang Publishing Media and Changchun Faway Automobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changchun Faway Auto 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 Changchun Faway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changchun Faway Auto has no effect on the direction of Changjiang Publishing i.e., Changjiang Publishing and Changchun Faway go up and down completely randomly.
Pair Corralation between Changjiang Publishing and Changchun Faway
Assuming the 90 days trading horizon Changjiang Publishing Media is expected to generate 1.2 times more return on investment than Changchun Faway. However, Changjiang Publishing is 1.2 times more volatile than Changchun Faway Automobile. It trades about 0.05 of its potential returns per unit of risk. Changchun Faway Automobile is currently generating about 0.02 per unit of risk. If you would invest 557.00 in Changjiang Publishing Media on August 31, 2024 and sell it today you would earn a total of 282.00 from holding Changjiang Publishing Media or generate 50.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changjiang Publishing Media vs. Changchun Faway Automobile
Performance |
| Timeline |
| Changjiang Publishing |
| Changchun Faway Auto |
Changjiang Publishing and Changchun Faway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changjiang Publishing and Changchun Faway
The main advantage of trading using opposite Changjiang Publishing and Changchun Faway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changjiang Publishing position performs unexpectedly, Changchun Faway 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 Changchun Faway will offset losses from the drop in Changchun Faway'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 |
| Changchun Faway vs. Tieling Newcity Investment | Changchun Faway vs. Markor International Home | Changchun Faway vs. Cultural Investment Holdings | Changchun Faway vs. Suofeiya Home Collection |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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