Correlation Between China Publishing and Xiandai Investment
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By analyzing existing cross correlation between China Publishing Media and Xiandai Investment Co, you can compare the effects of market volatilities on China Publishing and Xiandai Investment 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 Xiandai Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Publishing and Xiandai Investment.
Diversification Opportunities for China Publishing and Xiandai Investment
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and Xiandai is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding China Publishing Media and Xiandai Investment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiandai Investment 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 Xiandai Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiandai Investment has no effect on the direction of China Publishing i.e., China Publishing and Xiandai Investment go up and down completely randomly.
Pair Corralation between China Publishing and Xiandai Investment
Assuming the 90 days trading horizon China Publishing Media is expected to generate 2.35 times more return on investment than Xiandai Investment. However, China Publishing is 2.35 times more volatile than Xiandai Investment Co. It trades about 0.03 of its potential returns per unit of risk. Xiandai Investment Co is currently generating about 0.01 per unit of risk. If you would invest 494.00 in China Publishing Media on October 16, 2024 and sell it today you would earn a total of 161.00 from holding China Publishing Media or generate 32.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Publishing Media vs. Xiandai Investment Co
Performance |
| Timeline |
| China Publishing Media |
| Xiandai Investment |
China Publishing and Xiandai Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Publishing and Xiandai Investment
The main advantage of trading using opposite China Publishing and Xiandai Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Publishing position performs unexpectedly, Xiandai Investment 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 Xiandai Investment will offset losses from the drop in Xiandai Investment's long position.| China Publishing vs. Xiangyu Medical Co | China Publishing vs. Holitech Technology Co | China Publishing vs. Chongqing Brewery Co | China Publishing vs. Sinofibers Technology Co |
| Xiandai Investment vs. Bingo Software Co | Xiandai Investment vs. China Publishing Media | Xiandai Investment vs. Shanghai Newtouch Software | Xiandai Investment 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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