Correlation Between China Publishing and Xinhu Zhongbao
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By analyzing existing cross correlation between China Publishing Media and Xinhu Zhongbao Co, you can compare the effects of market volatilities on China Publishing and Xinhu Zhongbao 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 Xinhu Zhongbao. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Publishing and Xinhu Zhongbao.
Diversification Opportunities for China Publishing and Xinhu Zhongbao
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Xinhu is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding China Publishing Media and Xinhu Zhongbao Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinhu Zhongbao 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 Xinhu Zhongbao. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinhu Zhongbao has no effect on the direction of China Publishing i.e., China Publishing and Xinhu Zhongbao go up and down completely randomly.
Pair Corralation between China Publishing and Xinhu Zhongbao
Assuming the 90 days trading horizon China Publishing Media is expected to generate 1.56 times more return on investment than Xinhu Zhongbao. However, China Publishing is 1.56 times more volatile than Xinhu Zhongbao Co. It trades about 0.03 of its potential returns per unit of risk. Xinhu Zhongbao Co is currently generating about 0.02 per unit of risk. If you would invest 582.00 in China Publishing Media on December 4, 2024 and sell it today you would earn a total of 91.00 from holding China Publishing Media or generate 15.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
China Publishing Media vs. Xinhu Zhongbao Co
Performance |
| Timeline |
| China Publishing Media |
| Xinhu Zhongbao |
China Publishing and Xinhu Zhongbao Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Publishing and Xinhu Zhongbao
The main advantage of trading using opposite China Publishing and Xinhu Zhongbao positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Publishing position performs unexpectedly, Xinhu Zhongbao 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 Xinhu Zhongbao will offset losses from the drop in Xinhu Zhongbao's long position.| China Publishing vs. Chongqing Brewery Co | China Publishing vs. Qtone Education Group | China Publishing vs. Time Publishing and | China Publishing vs. Guangzhou Zhujiang Brewery |
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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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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