Correlation Between Southern PublishingMedia and Industrial Securities
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By analyzing existing cross correlation between Southern PublishingMedia Co and Industrial Securities Co, you can compare the effects of market volatilities on Southern PublishingMedia and Industrial Securities 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 Industrial Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Southern PublishingMedia and Industrial Securities.
Diversification Opportunities for Southern PublishingMedia and Industrial Securities
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Southern and Industrial is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Southern PublishingMedia Co and Industrial Securities Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Industrial Securities 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 Industrial Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Industrial Securities has no effect on the direction of Southern PublishingMedia i.e., Southern PublishingMedia and Industrial Securities go up and down completely randomly.
Pair Corralation between Southern PublishingMedia and Industrial Securities
Assuming the 90 days trading horizon Southern PublishingMedia Co is expected to generate 1.5 times more return on investment than Industrial Securities. However, Southern PublishingMedia is 1.5 times more volatile than Industrial Securities Co. It trades about 0.12 of its potential returns per unit of risk. Industrial Securities Co is currently generating about -0.03 per unit of risk. If you would invest 1,394 in Southern PublishingMedia Co on September 4, 2024 and sell it today you would earn a total of 110.00 from holding Southern PublishingMedia Co or generate 7.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Southern PublishingMedia Co vs. Industrial Securities Co
Performance |
| Timeline |
| Southern PublishingMedia |
| Industrial Securities |
Southern PublishingMedia and Industrial Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Southern PublishingMedia and Industrial Securities
The main advantage of trading using opposite Southern PublishingMedia and Industrial Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Southern PublishingMedia position performs unexpectedly, Industrial Securities 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 Industrial Securities will offset losses from the drop in Industrial Securities' long position.| Southern PublishingMedia vs. Ming Yang Smart | Southern PublishingMedia vs. 159681 | Southern PublishingMedia vs. 159005 | Southern PublishingMedia 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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