Correlation Between Changjiang Publishing and Southern PublishingMedia
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By analyzing existing cross correlation between Changjiang Publishing Media and Southern PublishingMedia Co, you can compare the effects of market volatilities on Changjiang Publishing and Southern PublishingMedia 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 Southern PublishingMedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changjiang Publishing and Southern PublishingMedia.
Diversification Opportunities for Changjiang Publishing and Southern PublishingMedia
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Changjiang and Southern is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Changjiang Publishing Media and Southern PublishingMedia Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Southern PublishingMedia 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 Southern PublishingMedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Southern PublishingMedia has no effect on the direction of Changjiang Publishing i.e., Changjiang Publishing and Southern PublishingMedia go up and down completely randomly.
Pair Corralation between Changjiang Publishing and Southern PublishingMedia
Assuming the 90 days trading horizon Changjiang Publishing Media is expected to under-perform the Southern PublishingMedia. In addition to that, Changjiang Publishing is 1.19 times more volatile than Southern PublishingMedia Co. It trades about -0.12 of its total potential returns per unit of risk. Southern PublishingMedia Co is currently generating about 0.27 per unit of volatility. If you would invest 1,500 in Southern PublishingMedia Co on November 3, 2024 and sell it today you would earn a total of 112.00 from holding Southern PublishingMedia Co or generate 7.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changjiang Publishing Media vs. Southern PublishingMedia Co
Performance |
| Timeline |
| Changjiang Publishing |
| Southern PublishingMedia |
Changjiang Publishing and Southern PublishingMedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changjiang Publishing and Southern PublishingMedia
The main advantage of trading using opposite Changjiang Publishing and Southern PublishingMedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changjiang Publishing position performs unexpectedly, Southern PublishingMedia 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 Southern PublishingMedia will offset losses from the drop in Southern PublishingMedia's long position.| Changjiang Publishing vs. Yan Tai Shuang | Changjiang Publishing vs. Jiamei Food Packaging | Changjiang Publishing vs. JuneYao Dairy Co | Changjiang Publishing vs. Youyou Foods 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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