Correlation Between Longjian Road and Duzhe Publishing
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By analyzing existing cross correlation between Longjian Road Bridge and Duzhe Publishing Media, you can compare the effects of market volatilities on Longjian Road and Duzhe Publishing 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 Longjian Road with a short position of Duzhe Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Longjian Road and Duzhe Publishing.
Diversification Opportunities for Longjian Road and Duzhe Publishing
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Longjian and Duzhe is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Longjian Road Bridge and Duzhe Publishing Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Duzhe Publishing Media and Longjian Road 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 Longjian Road Bridge are associated (or correlated) with Duzhe Publishing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Duzhe Publishing Media has no effect on the direction of Longjian Road i.e., Longjian Road and Duzhe Publishing go up and down completely randomly.
Pair Corralation between Longjian Road and Duzhe Publishing
Assuming the 90 days trading horizon Longjian Road is expected to generate 21.23 times less return on investment than Duzhe Publishing. But when comparing it to its historical volatility, Longjian Road Bridge is 1.4 times less risky than Duzhe Publishing. It trades about 0.0 of its potential returns per unit of risk. Duzhe Publishing Media is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 610.00 in Duzhe Publishing Media on August 29, 2024 and sell it today you would earn a total of 8.00 from holding Duzhe Publishing Media or generate 1.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Longjian Road Bridge vs. Duzhe Publishing Media
Performance |
| Timeline |
| Longjian Road Bridge |
| Duzhe Publishing Media |
Longjian Road and Duzhe Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Longjian Road and Duzhe Publishing
The main advantage of trading using opposite Longjian Road and Duzhe Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Longjian Road position performs unexpectedly, Duzhe Publishing 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 Duzhe Publishing will offset losses from the drop in Duzhe Publishing's long position.| Longjian Road vs. Guangzhou Jinyi Media | Longjian Road vs. Nexchip Semiconductor Corp | Longjian Road vs. Northern United Publishing | Longjian Road vs. Sportsoul Co Ltd |
| Duzhe Publishing vs. China State Construction | Duzhe Publishing vs. Huafa Industrial Co | Duzhe Publishing vs. China International Capital | Duzhe Publishing 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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