Correlation Between Changjiang Publishing and Chison Medical
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By analyzing existing cross correlation between Changjiang Publishing Media and Chison Medical Technologies, you can compare the effects of market volatilities on Changjiang Publishing and Chison Medical 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 Chison Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changjiang Publishing and Chison Medical.
Diversification Opportunities for Changjiang Publishing and Chison Medical
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Changjiang and Chison is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Changjiang Publishing Media and Chison Medical Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chison Medical Techn 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 Chison Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chison Medical Techn has no effect on the direction of Changjiang Publishing i.e., Changjiang Publishing and Chison Medical go up and down completely randomly.
Pair Corralation between Changjiang Publishing and Chison Medical
Assuming the 90 days trading horizon Changjiang Publishing Media is expected to generate 1.02 times more return on investment than Chison Medical. However, Changjiang Publishing is 1.02 times more volatile than Chison Medical Technologies. It trades about -0.07 of its potential returns per unit of risk. Chison Medical Technologies is currently generating about -0.32 per unit of risk. If you would invest 902.00 in Changjiang Publishing Media on October 17, 2024 and sell it today you would lose (31.00) from holding Changjiang Publishing Media or give up 3.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changjiang Publishing Media vs. Chison Medical Technologies
Performance |
| Timeline |
| Changjiang Publishing |
| Chison Medical Techn |
Changjiang Publishing and Chison Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changjiang Publishing and Chison Medical
The main advantage of trading using opposite Changjiang Publishing and Chison Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changjiang Publishing position performs unexpectedly, Chison Medical 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 Chison Medical will offset losses from the drop in Chison Medical's long position.The idea behind Changjiang Publishing Media and Chison Medical Technologies pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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