Correlation Between China Publishing and Xiamen Wanli
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Publishing Media and Xiamen Wanli Stone, you can compare the effects of market volatilities on China Publishing and Xiamen Wanli 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 Xiamen Wanli. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Publishing and Xiamen Wanli.
Diversification Opportunities for China Publishing and Xiamen Wanli
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and Xiamen is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding China Publishing Media and Xiamen Wanli Stone in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen Wanli Stone 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 Xiamen Wanli. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen Wanli Stone has no effect on the direction of China Publishing i.e., China Publishing and Xiamen Wanli go up and down completely randomly.
Pair Corralation between China Publishing and Xiamen Wanli
Assuming the 90 days trading horizon China Publishing Media is expected to generate 1.56 times more return on investment than Xiamen Wanli. However, China Publishing is 1.56 times more volatile than Xiamen Wanli Stone. It trades about 0.2 of its potential returns per unit of risk. Xiamen Wanli Stone is currently generating about 0.12 per unit of risk. If you would invest 686.00 in China Publishing Media on September 1, 2024 and sell it today you would earn a total of 140.00 from holding China Publishing Media or generate 20.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
China Publishing Media vs. Xiamen Wanli Stone
Performance |
| Timeline |
| China Publishing Media |
| Xiamen Wanli Stone |
China Publishing and Xiamen Wanli Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Publishing and Xiamen Wanli
The main advantage of trading using opposite China Publishing and Xiamen Wanli positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Publishing position performs unexpectedly, Xiamen Wanli 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 Xiamen Wanli will offset losses from the drop in Xiamen Wanli's long position.| China Publishing vs. Keda Clean Energy | China Publishing vs. Anhui Jianghuai Automobile | China Publishing vs. Qilu Bank Co | China Publishing vs. Nanjing Putian Telecommunications |
| Xiamen Wanli vs. China Publishing Media | Xiamen Wanli vs. Uroica Mining Safety | Xiamen Wanli vs. Chinese Universe Publishing | Xiamen Wanli vs. Western Mining 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |