Correlation Between China Publishing and Beijing Shunxin
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By analyzing existing cross correlation between China Publishing Media and Beijing Shunxin Agriculture, you can compare the effects of market volatilities on China Publishing and Beijing Shunxin 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 Beijing Shunxin. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Publishing and Beijing Shunxin.
Diversification Opportunities for China Publishing and Beijing Shunxin
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and Beijing is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding China Publishing Media and Beijing Shunxin Agriculture in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Shunxin Agri 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 Beijing Shunxin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Shunxin Agri has no effect on the direction of China Publishing i.e., China Publishing and Beijing Shunxin go up and down completely randomly.
Pair Corralation between China Publishing and Beijing Shunxin
Assuming the 90 days trading horizon China Publishing Media is expected to generate 1.16 times more return on investment than Beijing Shunxin. However, China Publishing is 1.16 times more volatile than Beijing Shunxin Agriculture. It trades about -0.03 of its potential returns per unit of risk. Beijing Shunxin Agriculture is currently generating about -0.03 per unit of risk. If you would invest 1,030 in China Publishing Media on October 16, 2024 and sell it today you would lose (349.00) from holding China Publishing Media or give up 33.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Publishing Media vs. Beijing Shunxin Agriculture
Performance |
| Timeline |
| China Publishing Media |
| Beijing Shunxin Agri |
China Publishing and Beijing Shunxin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Publishing and Beijing Shunxin
The main advantage of trading using opposite China Publishing and Beijing Shunxin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Publishing position performs unexpectedly, Beijing Shunxin 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 Beijing Shunxin will offset losses from the drop in Beijing Shunxin's long position.| China Publishing vs. Wintao Communications Co | China Publishing vs. Guangxi Wuzhou Communications | China Publishing vs. Everjoy Health Group | China Publishing vs. Heren Health Co |
| Beijing Shunxin vs. China Publishing Media | Beijing Shunxin vs. Omnijoi Media Corp | Beijing Shunxin vs. Anhui Deli Household | Beijing Shunxin vs. Gansu Huangtai Wine marketing |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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