Correlation Between China Publishing and Zhejiang Publishing
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By analyzing existing cross correlation between China Publishing Media and Zhejiang Publishing Media, you can compare the effects of market volatilities on China Publishing and Zhejiang Publishing 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 Zhejiang Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Publishing and Zhejiang Publishing.
Diversification Opportunities for China Publishing and Zhejiang Publishing
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between China and Zhejiang is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding China Publishing Media and Zhejiang Publishing Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Publishing Media 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 Zhejiang Publishing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Publishing Media has no effect on the direction of China Publishing i.e., China Publishing and Zhejiang Publishing go up and down completely randomly.
Pair Corralation between China Publishing and Zhejiang Publishing
Assuming the 90 days trading horizon China Publishing Media is expected to generate 1.87 times more return on investment than Zhejiang Publishing. However, China Publishing is 1.87 times more volatile than Zhejiang Publishing Media. It trades about 0.2 of its potential returns per unit of risk. Zhejiang Publishing Media is currently generating about -0.15 per unit of risk. If you would invest 706.00 in China Publishing Media on August 29, 2024 and sell it today you would earn a total of 148.00 from holding China Publishing Media or generate 20.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Publishing Media vs. Zhejiang Publishing Media
Performance |
| Timeline |
| China Publishing Media |
| Zhejiang Publishing Media |
China Publishing and Zhejiang Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Publishing and Zhejiang Publishing
The main advantage of trading using opposite China Publishing and Zhejiang Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Publishing position performs unexpectedly, Zhejiang Publishing 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 Zhejiang Publishing will offset losses from the drop in Zhejiang Publishing's long position.| China Publishing vs. Industrial and Commercial | China Publishing vs. Agricultural Bank of | China Publishing vs. China Construction Bank | China Publishing vs. Bank of China |
| Zhejiang Publishing vs. Industrial and Commercial | Zhejiang Publishing vs. Agricultural Bank of | Zhejiang Publishing vs. China Construction Bank | Zhejiang Publishing vs. Bank of China |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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