Correlation Between Northern United and China Publishing
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By analyzing existing cross correlation between Northern United Publishing and China Publishing Media, you can compare the effects of market volatilities on Northern United and China 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 Northern United with a short position of China Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Northern United and China Publishing.
Diversification Opportunities for Northern United and China Publishing
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Northern and China is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Northern United Publishing and China Publishing Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Publishing Media and Northern United 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 Northern United Publishing are associated (or correlated) with China Publishing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Publishing Media has no effect on the direction of Northern United i.e., Northern United and China Publishing go up and down completely randomly.
Pair Corralation between Northern United and China Publishing
Assuming the 90 days trading horizon Northern United is expected to generate 1.43 times less return on investment than China Publishing. But when comparing it to its historical volatility, Northern United Publishing is 1.46 times less risky than China Publishing. It trades about 0.21 of its potential returns per unit of risk. China Publishing Media is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 568.00 in China Publishing Media on August 29, 2024 and sell it today you would earn a total of 286.00 from holding China Publishing Media or generate 50.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Northern United Publishing vs. China Publishing Media
Performance |
| Timeline |
| Northern United Publ |
| China Publishing Media |
Northern United and China Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Northern United and China Publishing
The main advantage of trading using opposite Northern United and China Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Northern United position performs unexpectedly, China 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 China Publishing will offset losses from the drop in China Publishing's long position.| Northern United vs. Industrial and Commercial | Northern United vs. Agricultural Bank of | Northern United vs. China Construction Bank | Northern United vs. Bank of China |
| China Publishing vs. Industrial and Commercial | China Publishing vs. Agricultural Bank of | China Publishing vs. China Construction Bank | China 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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