Correlation Between Southern PublishingMedia and Sichuan Hebang
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By analyzing existing cross correlation between Southern PublishingMedia Co and Sichuan Hebang Biotechnology, you can compare the effects of market volatilities on Southern PublishingMedia and Sichuan Hebang 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 Sichuan Hebang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Southern PublishingMedia and Sichuan Hebang.
Diversification Opportunities for Southern PublishingMedia and Sichuan Hebang
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Southern and Sichuan is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Southern PublishingMedia Co and Sichuan Hebang Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Hebang Biote 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 Sichuan Hebang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Hebang Biote has no effect on the direction of Southern PublishingMedia i.e., Southern PublishingMedia and Sichuan Hebang go up and down completely randomly.
Pair Corralation between Southern PublishingMedia and Sichuan Hebang
Assuming the 90 days trading horizon Southern PublishingMedia Co is expected to generate 1.32 times more return on investment than Sichuan Hebang. However, Southern PublishingMedia is 1.32 times more volatile than Sichuan Hebang Biotechnology. It trades about 0.07 of its potential returns per unit of risk. Sichuan Hebang Biotechnology is currently generating about 0.02 per unit of risk. If you would invest 1,259 in Southern PublishingMedia Co on November 4, 2024 and sell it today you would earn a total of 353.00 from holding Southern PublishingMedia Co or generate 28.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Southern PublishingMedia Co vs. Sichuan Hebang Biotechnology
Performance |
| Timeline |
| Southern PublishingMedia |
| Sichuan Hebang Biote |
Southern PublishingMedia and Sichuan Hebang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Southern PublishingMedia and Sichuan Hebang
The main advantage of trading using opposite Southern PublishingMedia and Sichuan Hebang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Southern PublishingMedia position performs unexpectedly, Sichuan Hebang 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 Sichuan Hebang will offset losses from the drop in Sichuan Hebang's long position.| Southern PublishingMedia vs. Shenzhen Cotran New | Southern PublishingMedia vs. Lotus Health Group | Southern PublishingMedia vs. Beijing Lier High | Southern PublishingMedia vs. Shanghai Rongtai Health |
| Sichuan Hebang vs. Mango Excellent Media | Sichuan Hebang vs. Yankershop Food Co | Sichuan Hebang vs. JuneYao Dairy Co | Sichuan Hebang vs. Shandong Publishing Media |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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