Correlation Between JiShi Media and Wasu Media
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By analyzing existing cross correlation between JiShi Media Co and Wasu Media Holding, you can compare the effects of market volatilities on JiShi Media and Wasu Media 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 JiShi Media with a short position of Wasu Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of JiShi Media and Wasu Media.
Diversification Opportunities for JiShi Media and Wasu Media
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between JiShi and Wasu is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding JiShi Media Co and Wasu Media Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wasu Media Holding and JiShi Media 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 JiShi Media Co are associated (or correlated) with Wasu Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wasu Media Holding has no effect on the direction of JiShi Media i.e., JiShi Media and Wasu Media go up and down completely randomly.
Pair Corralation between JiShi Media and Wasu Media
Assuming the 90 days trading horizon JiShi Media Co is expected to generate 1.74 times more return on investment than Wasu Media. However, JiShi Media is 1.74 times more volatile than Wasu Media Holding. It trades about 0.13 of its potential returns per unit of risk. Wasu Media Holding is currently generating about 0.07 per unit of risk. If you would invest 105.00 in JiShi Media Co on November 2, 2024 and sell it today you would earn a total of 64.00 from holding JiShi Media Co or generate 60.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JiShi Media Co vs. Wasu Media Holding
Performance |
| Timeline |
| JiShi Media |
| Wasu Media Holding |
JiShi Media and Wasu Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JiShi Media and Wasu Media
The main advantage of trading using opposite JiShi Media and Wasu Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JiShi Media position performs unexpectedly, Wasu Media 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 Wasu Media will offset losses from the drop in Wasu Media's long position.| JiShi Media vs. Chengdu Xingrong Investment | JiShi Media vs. Shanghai Material Trading | JiShi Media vs. ROPEOK Technology Group | JiShi Media vs. Cultural Investment Holdings |
| Wasu Media vs. GuoChuang Software Co | Wasu Media vs. Xinhua Winshare Publishing | Wasu Media vs. Offcn Education Technology | Wasu Media vs. Qtone Education Group |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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