Correlation Between China State and Southern PublishingMedia
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By analyzing existing cross correlation between China State Construction and Southern PublishingMedia Co, you can compare the effects of market volatilities on China State and Southern PublishingMedia 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 Southern PublishingMedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of China State and Southern PublishingMedia.
Diversification Opportunities for China State and Southern PublishingMedia
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Southern is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding China State Construction and Southern PublishingMedia Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Southern PublishingMedia 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 Southern PublishingMedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Southern PublishingMedia has no effect on the direction of China State i.e., China State and Southern PublishingMedia go up and down completely randomly.
Pair Corralation between China State and Southern PublishingMedia
Assuming the 90 days trading horizon China State Construction is expected to generate 0.57 times more return on investment than Southern PublishingMedia. However, China State Construction is 1.77 times less risky than Southern PublishingMedia. It trades about 0.06 of its potential returns per unit of risk. Southern PublishingMedia Co is currently generating about 0.01 per unit of risk. If you would invest 476.00 in China State Construction on September 2, 2024 and sell it today you would earn a total of 122.00 from holding China State Construction or generate 25.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China State Construction vs. Southern PublishingMedia Co
Performance |
| Timeline |
| China State Construction |
| Southern PublishingMedia |
China State and Southern PublishingMedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China State and Southern PublishingMedia
The main advantage of trading using opposite China State and Southern PublishingMedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China State position performs unexpectedly, Southern PublishingMedia 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 Southern PublishingMedia will offset losses from the drop in Southern PublishingMedia's long position.| China State vs. 159681 | China State vs. 159005 | China State vs. Loctek Ergonomic Technology | China State vs. 516220 |
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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