Correlation Between Jiangsu Broadcasting and Ciwen Media
Specify exactly 2 symbols:
By analyzing existing cross correlation between Jiangsu Broadcasting Cable and Ciwen Media Co, you can compare the effects of market volatilities on Jiangsu Broadcasting and Ciwen Media 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 Jiangsu Broadcasting with a short position of Ciwen Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Broadcasting and Ciwen Media.
Diversification Opportunities for Jiangsu Broadcasting and Ciwen Media
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jiangsu and Ciwen is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Broadcasting Cable and Ciwen Media Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ciwen Media and Jiangsu Broadcasting 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 Jiangsu Broadcasting Cable are associated (or correlated) with Ciwen Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ciwen Media has no effect on the direction of Jiangsu Broadcasting i.e., Jiangsu Broadcasting and Ciwen Media go up and down completely randomly.
Pair Corralation between Jiangsu Broadcasting and Ciwen Media
Assuming the 90 days trading horizon Jiangsu Broadcasting is expected to generate 4.66 times less return on investment than Ciwen Media. But when comparing it to its historical volatility, Jiangsu Broadcasting Cable is 1.94 times less risky than Ciwen Media. It trades about 0.07 of its potential returns per unit of risk. Ciwen Media Co is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 588.00 in Ciwen Media Co on November 7, 2024 and sell it today you would earn a total of 36.00 from holding Ciwen Media Co or generate 6.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Broadcasting Cable vs. Ciwen Media Co
Performance |
| Timeline |
| Jiangsu Broadcasting |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Ciwen Media |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Jiangsu Broadcasting and Ciwen Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Broadcasting and Ciwen Media
The main advantage of trading using opposite Jiangsu Broadcasting and Ciwen Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Broadcasting position performs unexpectedly, Ciwen Media 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 Ciwen Media will offset losses from the drop in Ciwen Media's long position.The idea behind Jiangsu Broadcasting Cable and Ciwen Media Co 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.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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |