Correlation Between Southern PublishingMedia and Xiamen Kehua
Specify exactly 2 symbols:
By analyzing existing cross correlation between Southern PublishingMedia Co and Xiamen Kehua Hengsheng, you can compare the effects of market volatilities on Southern PublishingMedia and Xiamen Kehua 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 Southern PublishingMedia with a short position of Xiamen Kehua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Southern PublishingMedia and Xiamen Kehua.
Diversification Opportunities for Southern PublishingMedia and Xiamen Kehua
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Southern and Xiamen is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Southern PublishingMedia Co and Xiamen Kehua Hengsheng in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen Kehua Hengsheng and Southern PublishingMedia 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 Southern PublishingMedia Co are associated (or correlated) with Xiamen Kehua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen Kehua Hengsheng has no effect on the direction of Southern PublishingMedia i.e., Southern PublishingMedia and Xiamen Kehua go up and down completely randomly.
Pair Corralation between Southern PublishingMedia and Xiamen Kehua
Assuming the 90 days trading horizon Southern PublishingMedia Co is expected to generate 0.32 times more return on investment than Xiamen Kehua. However, Southern PublishingMedia Co is 3.17 times less risky than Xiamen Kehua. It trades about 0.72 of its potential returns per unit of risk. Xiamen Kehua Hengsheng is currently generating about -0.01 per unit of risk. If you would invest 1,428 in Southern PublishingMedia Co on November 8, 2024 and sell it today you would earn a total of 253.00 from holding Southern PublishingMedia Co or generate 17.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Southern PublishingMedia Co vs. Xiamen Kehua Hengsheng
Performance |
| Timeline |
| Southern PublishingMedia |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
| Xiamen Kehua Hengsheng |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
Southern PublishingMedia and Xiamen Kehua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Southern PublishingMedia and Xiamen Kehua
The main advantage of trading using opposite Southern PublishingMedia and Xiamen Kehua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Southern PublishingMedia position performs unexpectedly, Xiamen Kehua 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 Xiamen Kehua will offset losses from the drop in Xiamen Kehua's long position.The idea behind Southern PublishingMedia Co and Xiamen Kehua Hengsheng 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 Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |