Correlation Between China Publishing and Chengdu B-ray
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By analyzing existing cross correlation between China Publishing Media and Chengdu B ray Media, you can compare the effects of market volatilities on China Publishing and Chengdu B-ray 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 Chengdu B-ray. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Publishing and Chengdu B-ray.
Diversification Opportunities for China Publishing and Chengdu B-ray
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and Chengdu is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding China Publishing Media and Chengdu B ray Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu B ray 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 Chengdu B-ray. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu B ray has no effect on the direction of China Publishing i.e., China Publishing and Chengdu B-ray go up and down completely randomly.
Pair Corralation between China Publishing and Chengdu B-ray
Assuming the 90 days trading horizon China Publishing Media is expected to generate 1.18 times more return on investment than Chengdu B-ray. However, China Publishing is 1.18 times more volatile than Chengdu B ray Media. It trades about 0.03 of its potential returns per unit of risk. Chengdu B ray Media is currently generating about 0.0 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Publishing Media vs. Chengdu B ray Media
Performance |
| Timeline |
| China Publishing Media |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
| Chengdu B ray |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
China Publishing and Chengdu B-ray Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Publishing and Chengdu B-ray
The main advantage of trading using opposite China Publishing and Chengdu B-ray positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Publishing position performs unexpectedly, Chengdu B-ray 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 Chengdu B-ray will offset losses from the drop in Chengdu B-ray's long position.The idea behind China Publishing Media and Chengdu B ray Media 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 Stocks Directory module to find actively traded stocks across global markets.
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