Correlation Between Shandong Publishing and Changjiang Publishing
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By analyzing existing cross correlation between Shandong Publishing Media and Changjiang Publishing Media, you can compare the effects of market volatilities on Shandong Publishing and Changjiang 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 Shandong Publishing with a short position of Changjiang Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Publishing and Changjiang Publishing.
Diversification Opportunities for Shandong Publishing and Changjiang Publishing
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shandong and Changjiang is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Publishing Media and Changjiang Publishing Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changjiang Publishing and Shandong 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 Shandong Publishing Media are associated (or correlated) with Changjiang Publishing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changjiang Publishing has no effect on the direction of Shandong Publishing i.e., Shandong Publishing and Changjiang Publishing go up and down completely randomly.
Pair Corralation between Shandong Publishing and Changjiang Publishing
Assuming the 90 days trading horizon Shandong Publishing Media is expected to under-perform the Changjiang Publishing. In addition to that, Shandong Publishing is 1.21 times more volatile than Changjiang Publishing Media. It trades about -0.26 of its total potential returns per unit of risk. Changjiang Publishing Media is currently generating about -0.04 per unit of volatility. If you would invest 887.00 in Changjiang Publishing Media on October 18, 2024 and sell it today you would lose (16.00) from holding Changjiang Publishing Media or give up 1.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Publishing Media vs. Changjiang Publishing Media
Performance |
| Timeline |
| Shandong Publishing Media |
| Changjiang Publishing |
Shandong Publishing and Changjiang Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Publishing and Changjiang Publishing
The main advantage of trading using opposite Shandong Publishing and Changjiang Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Publishing position performs unexpectedly, Changjiang 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 Changjiang Publishing will offset losses from the drop in Changjiang Publishing's long position.| Shandong Publishing vs. Easyhome New Retail | Shandong Publishing vs. JiShi Media Co | Shandong Publishing vs. Threes Company Media | Shandong Publishing vs. Changjiang Publishing Media |
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 Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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