Correlation Between China Publishing and Shenyang Blue
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Publishing Media and Shenyang Blue Silver, you can compare the effects of market volatilities on China Publishing and Shenyang Blue 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 Shenyang Blue. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Publishing and Shenyang Blue.
Diversification Opportunities for China Publishing and Shenyang Blue
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Shenyang is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding China Publishing Media and Shenyang Blue Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenyang Blue Silver 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 Shenyang Blue. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenyang Blue Silver has no effect on the direction of China Publishing i.e., China Publishing and Shenyang Blue go up and down completely randomly.
Pair Corralation between China Publishing and Shenyang Blue
Assuming the 90 days trading horizon China Publishing is expected to generate 1.03 times less return on investment than Shenyang Blue. But when comparing it to its historical volatility, China Publishing Media is 1.45 times less risky than Shenyang Blue. It trades about 0.24 of its potential returns per unit of risk. Shenyang Blue Silver is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 2,156 in Shenyang Blue Silver on November 8, 2024 and sell it today you would earn a total of 154.00 from holding Shenyang Blue Silver or generate 7.14% 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. Shenyang Blue Silver
Performance |
| Timeline |
| China Publishing Media |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
| Shenyang Blue Silver |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
China Publishing and Shenyang Blue Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Publishing and Shenyang Blue
The main advantage of trading using opposite China Publishing and Shenyang Blue positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Publishing position performs unexpectedly, Shenyang Blue 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 Shenyang Blue will offset losses from the drop in Shenyang Blue's long position.The idea behind China Publishing Media and Shenyang Blue Silver 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| 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 | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |