Correlation Between China Publishing and China State
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By analyzing existing cross correlation between China Publishing Media and China State Construction, you can compare the effects of market volatilities on China Publishing and China State 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 China State. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Publishing and China State.
Diversification Opportunities for China Publishing and China State
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and China is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding China Publishing Media and China State Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China State Construction 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 China State. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China State Construction has no effect on the direction of China Publishing i.e., China Publishing and China State go up and down completely randomly.
Pair Corralation between China Publishing and China State
Assuming the 90 days trading horizon China Publishing Media is expected to generate 2.08 times more return on investment than China State. However, China Publishing is 2.08 times more volatile than China State Construction. It trades about -0.02 of its potential returns per unit of risk. China State Construction is currently generating about -0.17 per unit of risk. If you would invest 704.00 in China Publishing Media on November 3, 2024 and sell it today you would lose (8.00) from holding China Publishing Media or give up 1.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Publishing Media vs. China State Construction
Performance |
| Timeline |
| China Publishing Media |
| China State Construction |
China Publishing and China State Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Publishing and China State
The main advantage of trading using opposite China Publishing and China State positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Publishing position performs unexpectedly, China State 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 China State will offset losses from the drop in China State's long position.| China Publishing vs. Jiamei Food Packaging | China Publishing vs. New Hope Dairy | China Publishing vs. Beijing Yanjing Brewery | China Publishing vs. Yankershop Food Co |
| China State vs. Xinjiang Baodi Mining | China State vs. Ningbo Jintian Copper | China State vs. CIMC Vehicles Co | China State vs. Sinomach Automobile 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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