Correlation Between China Publishing and Emdoor Information
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By analyzing existing cross correlation between China Publishing Media and Emdoor Information Co, you can compare the effects of market volatilities on China Publishing and Emdoor Information 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 Emdoor Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Publishing and Emdoor Information.
Diversification Opportunities for China Publishing and Emdoor Information
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and Emdoor is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding China Publishing Media and Emdoor Information Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emdoor Information 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 Emdoor Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emdoor Information has no effect on the direction of China Publishing i.e., China Publishing and Emdoor Information go up and down completely randomly.
Pair Corralation between China Publishing and Emdoor Information
Assuming the 90 days trading horizon China Publishing Media is expected to generate 0.9 times more return on investment than Emdoor Information. However, China Publishing Media is 1.11 times less risky than Emdoor Information. It trades about 0.08 of its potential returns per unit of risk. Emdoor Information Co is currently generating about 0.06 per unit of risk. If you would invest 646.00 in China Publishing Media on September 2, 2024 and sell it today you would earn a total of 180.00 from holding China Publishing Media or generate 27.86% 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. Emdoor Information Co
Performance |
| Timeline |
| China Publishing Media |
| Emdoor Information |
China Publishing and Emdoor Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Publishing and Emdoor Information
The main advantage of trading using opposite China Publishing and Emdoor Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Publishing position performs unexpectedly, Emdoor Information 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 Emdoor Information will offset losses from the drop in Emdoor Information's long position.| China Publishing vs. Cambricon Technologies Corp | China Publishing vs. Loongson Technology Corp | China Publishing vs. Shenzhen Fortune Trend | China Publishing vs. Chongqing Road Bridge |
| Emdoor Information vs. Bank of China | Emdoor Information vs. Kweichow Moutai Co | Emdoor Information vs. PetroChina Co Ltd | Emdoor Information vs. Bank of Communications |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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