Correlation Between China Publishing and Chongqing Gas
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By analyzing existing cross correlation between China Publishing Media and Chongqing Gas Grp, you can compare the effects of market volatilities on China Publishing and Chongqing Gas 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 Chongqing Gas. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Publishing and Chongqing Gas.
Diversification Opportunities for China Publishing and Chongqing Gas
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Chongqing is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding China Publishing Media and Chongqing Gas Grp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chongqing Gas Grp 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 Chongqing Gas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chongqing Gas Grp has no effect on the direction of China Publishing i.e., China Publishing and Chongqing Gas go up and down completely randomly.
Pair Corralation between China Publishing and Chongqing Gas
Assuming the 90 days trading horizon China Publishing Media is expected to under-perform the Chongqing Gas. In addition to that, China Publishing is 1.66 times more volatile than Chongqing Gas Grp. It trades about -0.28 of its total potential returns per unit of risk. Chongqing Gas Grp is currently generating about -0.17 per unit of volatility. If you would invest 599.00 in Chongqing Gas Grp on October 23, 2024 and sell it today you would lose (26.00) from holding Chongqing Gas Grp or give up 4.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
China Publishing Media vs. Chongqing Gas Grp
Performance |
| Timeline |
| China Publishing Media |
| Chongqing Gas Grp |
China Publishing and Chongqing Gas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Publishing and Chongqing Gas
The main advantage of trading using opposite China Publishing and Chongqing Gas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Publishing position performs unexpectedly, Chongqing Gas 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 Chongqing Gas will offset losses from the drop in Chongqing Gas' long position.| China Publishing vs. ZJBC Information Technology | China Publishing vs. Jinxiandai Information Industry | China Publishing vs. CITIC Guoan Information | China Publishing vs. Emdoor Information Co |
| Chongqing Gas vs. China Publishing Media | Chongqing Gas vs. Muyuan Foodstuff Co | Chongqing Gas vs. Thinkingdom Media Group | Chongqing Gas vs. Hengdian Entertainment Co |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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