Correlation Between Shanghai Xinhua and COL Digital
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By analyzing existing cross correlation between Shanghai Xinhua Media and COL Digital Publishing, you can compare the effects of market volatilities on Shanghai Xinhua and COL Digital 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 Shanghai Xinhua with a short position of COL Digital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Xinhua and COL Digital.
Diversification Opportunities for Shanghai Xinhua and COL Digital
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shanghai and COL is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Xinhua Media and COL Digital Publishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COL Digital Publishing and Shanghai Xinhua 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 Shanghai Xinhua Media are associated (or correlated) with COL Digital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COL Digital Publishing has no effect on the direction of Shanghai Xinhua i.e., Shanghai Xinhua and COL Digital go up and down completely randomly.
Pair Corralation between Shanghai Xinhua and COL Digital
Assuming the 90 days trading horizon Shanghai Xinhua is expected to generate 9.1 times less return on investment than COL Digital. But when comparing it to its historical volatility, Shanghai Xinhua Media is 1.21 times less risky than COL Digital. It trades about 0.02 of its potential returns per unit of risk. COL Digital Publishing is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 2,771 in COL Digital Publishing on September 3, 2024 and sell it today you would earn a total of 267.00 from holding COL Digital Publishing or generate 9.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Xinhua Media vs. COL Digital Publishing
Performance |
| Timeline |
| Shanghai Xinhua Media |
| COL Digital Publishing |
Shanghai Xinhua and COL Digital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Xinhua and COL Digital
The main advantage of trading using opposite Shanghai Xinhua and COL Digital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Xinhua position performs unexpectedly, COL Digital 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 COL Digital will offset losses from the drop in COL Digital's long position.| Shanghai Xinhua vs. Anhui Transport Consulting | Shanghai Xinhua vs. Jiangxi Naipu Mining | Shanghai Xinhua vs. Shengda Mining Co | Shanghai Xinhua vs. Broadex Technologies Co |
| COL Digital vs. Gansu Jiu Steel | COL Digital vs. Ming Yang Smart | COL Digital vs. Aba Chemicals Corp | COL Digital vs. Loctek Ergonomic Technology |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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