Correlation Between China Publishing and Hongrun Construction
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By analyzing existing cross correlation between China Publishing Media and Hongrun Construction Group, you can compare the effects of market volatilities on China Publishing and Hongrun Construction 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 Hongrun Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Publishing and Hongrun Construction.
Diversification Opportunities for China Publishing and Hongrun Construction
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Hongrun is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding China Publishing Media and Hongrun Construction Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hongrun Construction 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 Hongrun Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hongrun Construction has no effect on the direction of China Publishing i.e., China Publishing and Hongrun Construction go up and down completely randomly.
Pair Corralation between China Publishing and Hongrun Construction
Assuming the 90 days trading horizon China Publishing Media is expected to generate 1.66 times more return on investment than Hongrun Construction. However, China Publishing is 1.66 times more volatile than Hongrun Construction Group. It trades about 0.05 of its potential returns per unit of risk. Hongrun Construction Group is currently generating about 0.01 per unit of risk. If you would invest 487.00 in China Publishing Media on September 12, 2024 and sell it today you would earn a total of 368.00 from holding China Publishing Media or generate 75.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Publishing Media vs. Hongrun Construction Group
Performance |
| Timeline |
| China Publishing Media |
| Hongrun Construction |
China Publishing and Hongrun Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Publishing and Hongrun Construction
The main advantage of trading using opposite China Publishing and Hongrun Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Publishing position performs unexpectedly, Hongrun Construction 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 Hongrun Construction will offset losses from the drop in Hongrun Construction's long position.| China Publishing vs. Kweichow Moutai Co | China Publishing vs. Shenzhen Mindray Bio Medical | China Publishing vs. G bits Network Technology | China Publishing vs. Beijing Roborock Technology |
| Hongrun Construction vs. Harvest Fund Management | Hongrun Construction vs. Hunan Mendale Hometextile | Hongrun Construction vs. Shanghai Shuixing Home | Hongrun Construction vs. Xiamen Goldenhome Co |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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