Correlation Between JiShi Media and Heilongjiang Publishing
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By analyzing existing cross correlation between JiShi Media Co and Heilongjiang Publishing Media, you can compare the effects of market volatilities on JiShi Media and Heilongjiang 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 Heilongjiang Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of JiShi Media and Heilongjiang Publishing.
Diversification Opportunities for JiShi Media and Heilongjiang Publishing
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between JiShi and Heilongjiang is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding JiShi Media Co and Heilongjiang Publishing Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heilongjiang Publishing 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 Heilongjiang Publishing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Heilongjiang Publishing has no effect on the direction of JiShi Media i.e., JiShi Media and Heilongjiang Publishing go up and down completely randomly.
Pair Corralation between JiShi Media and Heilongjiang Publishing
Assuming the 90 days trading horizon JiShi Media Co is expected to under-perform the Heilongjiang Publishing. In addition to that, JiShi Media is 1.26 times more volatile than Heilongjiang Publishing Media. It trades about -0.46 of its total potential returns per unit of risk. Heilongjiang Publishing Media is currently generating about -0.44 per unit of volatility. If you would invest 1,767 in Heilongjiang Publishing Media on October 14, 2024 and sell it today you would lose (482.00) from holding Heilongjiang Publishing Media or give up 27.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JiShi Media Co vs. Heilongjiang Publishing Media
Performance |
| Timeline |
| JiShi Media |
| Heilongjiang Publishing |
JiShi Media and Heilongjiang Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JiShi Media and Heilongjiang Publishing
The main advantage of trading using opposite JiShi Media and Heilongjiang Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JiShi Media position performs unexpectedly, Heilongjiang 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 Heilongjiang Publishing will offset losses from the drop in Heilongjiang Publishing's long position.| JiShi Media vs. Jiangsu Yueda Investment | JiShi Media vs. Henan Shuanghui Investment | JiShi Media vs. Cultural Investment Holdings | JiShi Media vs. Ningbo Fujia Industrial |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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