Correlation Between China Publishing and Masterwork Machinery
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Publishing Media and Masterwork Machinery, you can compare the effects of market volatilities on China Publishing and Masterwork Machinery 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 Masterwork Machinery. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Publishing and Masterwork Machinery.
Diversification Opportunities for China Publishing and Masterwork Machinery
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and Masterwork is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding China Publishing Media and Masterwork Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Masterwork Machinery 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 Masterwork Machinery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Masterwork Machinery has no effect on the direction of China Publishing i.e., China Publishing and Masterwork Machinery go up and down completely randomly.
Pair Corralation between China Publishing and Masterwork Machinery
Assuming the 90 days trading horizon China Publishing Media is expected to generate 1.15 times more return on investment than Masterwork Machinery. However, China Publishing is 1.15 times more volatile than Masterwork Machinery. It trades about 0.03 of its potential returns per unit of risk. Masterwork Machinery is currently generating about 0.01 per unit of risk. If you would invest 549.00 in China Publishing Media on November 7, 2024 and sell it today you would earn a total of 147.00 from holding China Publishing Media or generate 26.78% 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. Masterwork Machinery
Performance |
| Timeline |
| China Publishing Media |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
| Masterwork Machinery |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
China Publishing and Masterwork Machinery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Publishing and Masterwork Machinery
The main advantage of trading using opposite China Publishing and Masterwork Machinery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Publishing position performs unexpectedly, Masterwork Machinery 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 Masterwork Machinery will offset losses from the drop in Masterwork Machinery's long position.The idea behind China Publishing Media and Masterwork Machinery 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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| CEOs Directory Screen CEOs from public companies around the world |