Correlation Between Southern PublishingMedia and Zhonghang Electronic
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By analyzing existing cross correlation between Southern PublishingMedia Co and Zhonghang Electronic Measuring, you can compare the effects of market volatilities on Southern PublishingMedia and Zhonghang Electronic 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 Zhonghang Electronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Southern PublishingMedia and Zhonghang Electronic.
Diversification Opportunities for Southern PublishingMedia and Zhonghang Electronic
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Southern and Zhonghang is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Southern PublishingMedia Co and Zhonghang Electronic Measuring in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhonghang Electronic 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 Zhonghang Electronic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhonghang Electronic has no effect on the direction of Southern PublishingMedia i.e., Southern PublishingMedia and Zhonghang Electronic go up and down completely randomly.
Pair Corralation between Southern PublishingMedia and Zhonghang Electronic
Assuming the 90 days trading horizon Southern PublishingMedia Co is expected to generate 0.8 times more return on investment than Zhonghang Electronic. However, Southern PublishingMedia Co is 1.25 times less risky than Zhonghang Electronic. It trades about 0.09 of its potential returns per unit of risk. Zhonghang Electronic Measuring is currently generating about -0.09 per unit of risk. If you would invest 1,412 in Southern PublishingMedia Co on November 7, 2024 and sell it today you would earn a total of 200.00 from holding Southern PublishingMedia Co or generate 14.16% 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. Zhonghang Electronic Measuring
Performance |
| Timeline |
| Southern PublishingMedia |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
| Zhonghang Electronic |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Southern PublishingMedia and Zhonghang Electronic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Southern PublishingMedia and Zhonghang Electronic
The main advantage of trading using opposite Southern PublishingMedia and Zhonghang Electronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Southern PublishingMedia position performs unexpectedly, Zhonghang Electronic 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 Zhonghang Electronic will offset losses from the drop in Zhonghang Electronic's long position.The idea behind Southern PublishingMedia Co and Zhonghang Electronic Measuring 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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