Correlation Between RoadMain T and Ciwen Media
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By analyzing existing cross correlation between RoadMain T Co and Ciwen Media Co, you can compare the effects of market volatilities on RoadMain T and Ciwen Media 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 RoadMain T with a short position of Ciwen Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of RoadMain T and Ciwen Media.
Diversification Opportunities for RoadMain T and Ciwen Media
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between RoadMain and Ciwen is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding RoadMain T Co and Ciwen Media Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ciwen Media and RoadMain T 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 RoadMain T Co are associated (or correlated) with Ciwen Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ciwen Media has no effect on the direction of RoadMain T i.e., RoadMain T and Ciwen Media go up and down completely randomly.
Pair Corralation between RoadMain T and Ciwen Media
Assuming the 90 days trading horizon RoadMain T is expected to generate 5.68 times less return on investment than Ciwen Media. But when comparing it to its historical volatility, RoadMain T Co is 1.57 times less risky than Ciwen Media. It trades about 0.02 of its potential returns per unit of risk. Ciwen Media Co is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 610.00 in Ciwen Media Co on November 3, 2024 and sell it today you would earn a total of 14.00 from holding Ciwen Media Co or generate 2.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
RoadMain T Co vs. Ciwen Media Co
Performance |
| Timeline |
| RoadMain T |
| Ciwen Media |
RoadMain T and Ciwen Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RoadMain T and Ciwen Media
The main advantage of trading using opposite RoadMain T and Ciwen Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RoadMain T position performs unexpectedly, Ciwen Media 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 Ciwen Media will offset losses from the drop in Ciwen Media's long position.| RoadMain T vs. Huizhou Speed Wireless | RoadMain T vs. Citic Guoan Wine | RoadMain T vs. Queclink Wireless Solutions | RoadMain T vs. Tonghua Grape Wine |
| Ciwen Media vs. Humanwell Healthcare Group | Ciwen Media vs. Xinjiang Beixin RoadBridge | Ciwen Media vs. Hainan Haiqi Transportation | Ciwen Media vs. Chengdu Xinzhu RoadBridge |
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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