Correlation Between Zhejiang Publishing and China Publishing
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By analyzing existing cross correlation between Zhejiang Publishing Media and China Publishing Media, you can compare the effects of market volatilities on Zhejiang Publishing and China Publishing 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 Zhejiang Publishing with a short position of China Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Publishing and China Publishing.
Diversification Opportunities for Zhejiang Publishing and China Publishing
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Zhejiang and China is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Publishing Media and China Publishing Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Publishing Media and Zhejiang Publishing 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 Zhejiang Publishing Media are associated (or correlated) with China Publishing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Publishing Media has no effect on the direction of Zhejiang Publishing i.e., Zhejiang Publishing and China Publishing go up and down completely randomly.
Pair Corralation between Zhejiang Publishing and China Publishing
Assuming the 90 days trading horizon Zhejiang Publishing Media is expected to under-perform the China Publishing. But the stock apears to be less risky and, when comparing its historical volatility, Zhejiang Publishing Media is 1.87 times less risky than China Publishing. The stock trades about -0.15 of its potential returns per unit of risk. The China Publishing Media is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 706.00 in China Publishing Media on August 29, 2024 and sell it today you would earn a total of 148.00 from holding China Publishing Media or generate 20.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Publishing Media vs. China Publishing Media
Performance |
| Timeline |
| Zhejiang Publishing Media |
| China Publishing Media |
Zhejiang Publishing and China Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Publishing and China Publishing
The main advantage of trading using opposite Zhejiang Publishing and China Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Publishing position performs unexpectedly, China Publishing 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 China Publishing will offset losses from the drop in China Publishing's long position.| Zhejiang Publishing vs. Industrial and Commercial | Zhejiang Publishing vs. Agricultural Bank of | Zhejiang Publishing vs. China Construction Bank | Zhejiang Publishing vs. Bank of China |
| China Publishing vs. Industrial and Commercial | China Publishing vs. Agricultural Bank of | China Publishing vs. China Construction Bank | China Publishing vs. Bank of China |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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