Correlation Between China Publishing and Top Choice
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By analyzing existing cross correlation between China Publishing Media and Top Choice Medical, you can compare the effects of market volatilities on China Publishing and Top Choice 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 Top Choice. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Publishing and Top Choice.
Diversification Opportunities for China Publishing and Top Choice
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between China and Top is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding China Publishing Media and Top Choice Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Top Choice Medical 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 Top Choice. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Top Choice Medical has no effect on the direction of China Publishing i.e., China Publishing and Top Choice go up and down completely randomly.
Pair Corralation between China Publishing and Top Choice
Assuming the 90 days trading horizon China Publishing Media is expected to generate 1.26 times more return on investment than Top Choice. However, China Publishing is 1.26 times more volatile than Top Choice Medical. It trades about 0.03 of its potential returns per unit of risk. Top Choice Medical is currently generating about -0.09 per unit of risk. If you would invest 494.00 in China Publishing Media on October 16, 2024 and sell it today you would earn a total of 161.00 from holding China Publishing Media or generate 32.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
China Publishing Media vs. Top Choice Medical
Performance |
| Timeline |
| China Publishing Media |
| Top Choice Medical |
China Publishing and Top Choice Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Publishing and Top Choice
The main advantage of trading using opposite China Publishing and Top Choice positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Publishing position performs unexpectedly, Top Choice 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 Top Choice will offset losses from the drop in Top Choice's long position.| China Publishing vs. Wintao Communications Co | China Publishing vs. Guangxi Wuzhou Communications | China Publishing vs. Everjoy Health Group | China Publishing vs. Heren Health Co |
| Top Choice vs. Suzhou Mingzhi Technology | Top Choice vs. CICC Fund Management | Top Choice vs. Sanbo Hospital Management | Top Choice vs. Wuhan Yangtze Communication |
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.
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