Correlation Between China Publishing and Shanghai Jin
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By analyzing existing cross correlation between China Publishing Media and Shanghai Jin Jiang, you can compare the effects of market volatilities on China Publishing and Shanghai Jin 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 Shanghai Jin. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Publishing and Shanghai Jin.
Diversification Opportunities for China Publishing and Shanghai Jin
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and Shanghai is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding China Publishing Media and Shanghai Jin Jiang in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Jin Jiang 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 Shanghai Jin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Jin Jiang has no effect on the direction of China Publishing i.e., China Publishing and Shanghai Jin go up and down completely randomly.
Pair Corralation between China Publishing and Shanghai Jin
Assuming the 90 days trading horizon China Publishing Media is expected to generate 1.64 times more return on investment than Shanghai Jin. However, China Publishing is 1.64 times more volatile than Shanghai Jin Jiang. It trades about 0.03 of its potential returns per unit of risk. Shanghai Jin Jiang is currently generating about 0.01 per unit of risk. If you would invest 595.00 in China Publishing Media on November 28, 2024 and sell it today you would earn a total of 113.00 from holding China Publishing Media or generate 18.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.78% |
| Values | Daily Returns |
China Publishing Media vs. Shanghai Jin Jiang
Performance |
| Timeline |
| China Publishing Media |
| Shanghai Jin Jiang |
China Publishing and Shanghai Jin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Publishing and Shanghai Jin
The main advantage of trading using opposite China Publishing and Shanghai Jin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Publishing position performs unexpectedly, Shanghai Jin 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 Shanghai Jin will offset losses from the drop in Shanghai Jin's long position.| China Publishing vs. Allwin Telecommunication Co | China Publishing vs. Chongqing Shunbo Aluminum | China Publishing vs. Zhangjiagang Freetrade Science | China Publishing vs. Shanghai Yanpu Metal |
| Shanghai Jin vs. China Eastern Airlines | Shanghai Jin vs. Wangneng Environment Co | Shanghai Jin vs. Changjiang Jinggong Steel | Shanghai Jin vs. Aofu Environmental Technology |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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