Correlation Between China State and Ciwen Media
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By analyzing existing cross correlation between China State Construction and Ciwen Media Co, you can compare the effects of market volatilities on China State 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 China State with a short position of Ciwen Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of China State and Ciwen Media.
Diversification Opportunities for China State and Ciwen Media
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and Ciwen is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding China State Construction and Ciwen Media Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ciwen Media and China State 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 China State Construction 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 China State i.e., China State and Ciwen Media go up and down completely randomly.
Pair Corralation between China State and Ciwen Media
Assuming the 90 days trading horizon China State Construction is expected to under-perform the Ciwen Media. But the stock apears to be less risky and, when comparing its historical volatility, China State Construction is 2.41 times less risky than Ciwen Media. The stock trades about -0.37 of its potential returns per unit of risk. The Ciwen Media Co is currently generating about -0.09 of returns per unit of risk over similar time horizon. If you would invest 633.00 in Ciwen Media Co on October 26, 2024 and sell it today you would lose (36.00) from holding Ciwen Media Co or give up 5.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China State Construction vs. Ciwen Media Co
Performance |
| Timeline |
| China State Construction |
| Ciwen Media |
China State and Ciwen Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China State and Ciwen Media
The main advantage of trading using opposite China State and Ciwen Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China State 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.| China State vs. Easyhome New Retail | China State vs. Jiangsu Broadcasting Cable | China State vs. Chahua Modern Housewares | China State vs. Gansu Huangtai Wine marketing |
| Ciwen Media vs. China State Construction | Ciwen Media vs. Poly Real Estate | Ciwen Media vs. China Vanke Co | Ciwen Media vs. China Merchants Shekou |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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