Correlation Between JiShi Media and Shandong Publishing
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By analyzing existing cross correlation between JiShi Media Co and Shandong Publishing Media, you can compare the effects of market volatilities on JiShi Media and Shandong 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 JiShi Media with a short position of Shandong Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of JiShi Media and Shandong Publishing.
Diversification Opportunities for JiShi Media and Shandong Publishing
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between JiShi and Shandong is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding JiShi Media Co and Shandong Publishing Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Publishing Media 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 Shandong Publishing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Publishing Media has no effect on the direction of JiShi Media i.e., JiShi Media and Shandong Publishing go up and down completely randomly.
Pair Corralation between JiShi Media and Shandong Publishing
Assuming the 90 days trading horizon JiShi Media Co is expected to generate 1.55 times more return on investment than Shandong Publishing. However, JiShi Media is 1.55 times more volatile than Shandong Publishing Media. It trades about 0.03 of its potential returns per unit of risk. Shandong Publishing Media is currently generating about 0.04 per unit of risk. If you would invest 162.00 in JiShi Media Co on October 18, 2024 and sell it today you would earn a total of 17.00 from holding JiShi Media Co or generate 10.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JiShi Media Co vs. Shandong Publishing Media
Performance |
| Timeline |
| JiShi Media |
| Shandong Publishing Media |
JiShi Media and Shandong Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JiShi Media and Shandong Publishing
The main advantage of trading using opposite JiShi Media and Shandong Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JiShi Media position performs unexpectedly, Shandong 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 Shandong Publishing will offset losses from the drop in Shandong Publishing's long position.| JiShi Media vs. Dongfeng Automobile Co | JiShi Media vs. China Eastern Airlines | JiShi Media vs. Malion New Materials | JiShi Media vs. Juneyao Airlines |
| Shandong Publishing vs. Spring Airlines Co | Shandong Publishing vs. Guilin Seamild Foods | Shandong Publishing vs. HaiXin Foods Co | Shandong Publishing vs. Beijing Sanyuan Foods |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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