Correlation Between China Publishing and Chongqing Changan
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By analyzing existing cross correlation between China Publishing Media and Chongqing Changan Automobile, you can compare the effects of market volatilities on China Publishing and Chongqing Changan 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 China Publishing with a short position of Chongqing Changan. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Publishing and Chongqing Changan.
Diversification Opportunities for China Publishing and Chongqing Changan
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Chongqing is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding China Publishing Media and Chongqing Changan Automobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chongqing Changan and China 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 China Publishing Media are associated (or correlated) with Chongqing Changan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chongqing Changan has no effect on the direction of China Publishing i.e., China Publishing and Chongqing Changan go up and down completely randomly.
Pair Corralation between China Publishing and Chongqing Changan
Assuming the 90 days trading horizon China Publishing Media is expected to generate 1.3 times more return on investment than Chongqing Changan. However, China Publishing is 1.3 times more volatile than Chongqing Changan Automobile. It trades about 0.09 of its potential returns per unit of risk. Chongqing Changan Automobile is currently generating about 0.05 per unit of risk. If you would invest 564.00 in China Publishing Media on October 18, 2024 and sell it today you would earn a total of 123.00 from holding China Publishing Media or generate 21.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Publishing Media vs. Chongqing Changan Automobile
Performance |
| Timeline |
| China Publishing Media |
| Chongqing Changan |
China Publishing and Chongqing Changan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Publishing and Chongqing Changan
The main advantage of trading using opposite China Publishing and Chongqing Changan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Publishing position performs unexpectedly, Chongqing Changan 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 Chongqing Changan will offset losses from the drop in Chongqing Changan's long position.| China Publishing vs. Yindu Kitchen Equipment | China Publishing vs. Jiangsu Yueda Investment | China Publishing vs. Hubei Geoway Investment | China Publishing vs. Beijing Mainstreets Investment |
| Chongqing Changan vs. Hunan Investment Group | Chongqing Changan vs. Heilongjiang Publishing Media | Chongqing Changan vs. China Publishing Media | Chongqing Changan vs. Guangzhou Jinyi 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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