Correlation Between China Publishing and Wonders Information
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Publishing Media and Wonders Information, you can compare the effects of market volatilities on China Publishing and Wonders 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 Wonders Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Publishing and Wonders Information.
Diversification Opportunities for China Publishing and Wonders Information
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Wonders is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding China Publishing Media and Wonders Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wonders 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 Wonders Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wonders Information has no effect on the direction of China Publishing i.e., China Publishing and Wonders Information go up and down completely randomly.
Pair Corralation between China Publishing and Wonders Information
Assuming the 90 days trading horizon China Publishing Media is expected to generate 0.63 times more return on investment than Wonders Information. However, China Publishing Media is 1.59 times less risky than Wonders Information. It trades about 0.1 of its potential returns per unit of risk. Wonders Information is currently generating about 0.02 per unit of risk. If you would invest 678.00 in China Publishing Media on November 7, 2024 and sell it today you would earn a total of 18.00 from holding China Publishing Media or generate 2.65% 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. Wonders Information
Performance |
| Timeline |
| China Publishing Media |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Wonders Information |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
China Publishing and Wonders Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Publishing and Wonders Information
The main advantage of trading using opposite China Publishing and Wonders Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Publishing position performs unexpectedly, Wonders 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 Wonders Information will offset losses from the drop in Wonders Information's long position.The idea behind China Publishing Media and Wonders Information pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |