Correlation Between Heilongjiang Publishing and JiShi Media
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By analyzing existing cross correlation between Heilongjiang Publishing Media and JiShi Media Co, you can compare the effects of market volatilities on Heilongjiang Publishing and JiShi 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 Heilongjiang Publishing with a short position of JiShi Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Heilongjiang Publishing and JiShi Media.
Diversification Opportunities for Heilongjiang Publishing and JiShi Media
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Heilongjiang and JiShi is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Heilongjiang Publishing Media and JiShi Media Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JiShi Media and Heilongjiang 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 Heilongjiang Publishing Media are associated (or correlated) with JiShi Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JiShi Media has no effect on the direction of Heilongjiang Publishing i.e., Heilongjiang Publishing and JiShi Media go up and down completely randomly.
Pair Corralation between Heilongjiang Publishing and JiShi Media
Assuming the 90 days trading horizon Heilongjiang Publishing Media is expected to generate 0.8 times more return on investment than JiShi Media. However, Heilongjiang Publishing Media is 1.26 times less risky than JiShi Media. It trades about -0.44 of its potential returns per unit of risk. JiShi Media Co is currently generating about -0.46 per unit of risk. If you would invest 1,767 in Heilongjiang Publishing Media on October 14, 2024 and sell it today you would lose (482.00) from holding Heilongjiang Publishing Media or give up 27.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Heilongjiang Publishing Media vs. JiShi Media Co
Performance |
| Timeline |
| Heilongjiang Publishing |
| JiShi Media |
Heilongjiang Publishing and JiShi Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Heilongjiang Publishing and JiShi Media
The main advantage of trading using opposite Heilongjiang Publishing and JiShi Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Heilongjiang Publishing position performs unexpectedly, JiShi 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 JiShi Media will offset losses from the drop in JiShi Media's long position.The idea behind Heilongjiang Publishing Media and JiShi Media Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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