Correlation Between China Publishing and China Merchants
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By analyzing existing cross correlation between China Publishing Media and China Merchants Shekou, you can compare the effects of market volatilities on China Publishing and China Merchants 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 China Merchants. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Publishing and China Merchants.
Diversification Opportunities for China Publishing and China Merchants
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and China is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding China Publishing Media and China Merchants Shekou in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Merchants Shekou 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 China Merchants. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Merchants Shekou has no effect on the direction of China Publishing i.e., China Publishing and China Merchants go up and down completely randomly.
Pair Corralation between China Publishing and China Merchants
Assuming the 90 days trading horizon China Publishing Media is expected to generate 1.37 times more return on investment than China Merchants. However, China Publishing is 1.37 times more volatile than China Merchants Shekou. It trades about 0.05 of its potential returns per unit of risk. China Merchants Shekou is currently generating about 0.0 per unit of risk. If you would invest 501.00 in China Publishing Media on September 3, 2024 and sell it today you would earn a total of 325.00 from holding China Publishing Media or generate 64.87% 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. China Merchants Shekou
Performance |
| Timeline |
| China Publishing Media |
| China Merchants Shekou |
China Publishing and China Merchants Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Publishing and China Merchants
The main advantage of trading using opposite China Publishing and China Merchants positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Publishing position performs unexpectedly, China Merchants 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 China Merchants will offset losses from the drop in China Merchants' long position.| China Publishing vs. China Railway Construction | China Publishing vs. Lutian Machinery Co | China Publishing vs. Anhui Huilong Agricultural | China Publishing vs. Yingde Greatchem Chemicals |
| China Merchants vs. Beijing Sanyuan Foods | China Merchants vs. Heilongjiang Publishing Media | China Merchants vs. Gan Yuan Foods | China Merchants vs. China Publishing 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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