Correlation Between Crown Advanced and Ciwen Media
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By analyzing existing cross correlation between Crown Advanced Material and Ciwen Media Co, you can compare the effects of market volatilities on Crown Advanced 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 Crown Advanced with a short position of Ciwen Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crown Advanced and Ciwen Media.
Diversification Opportunities for Crown Advanced and Ciwen Media
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Crown and Ciwen is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Crown Advanced Material and Ciwen Media Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ciwen Media and Crown Advanced 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 Crown Advanced Material 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 Crown Advanced i.e., Crown Advanced and Ciwen Media go up and down completely randomly.
Pair Corralation between Crown Advanced and Ciwen Media
Assuming the 90 days trading horizon Crown Advanced Material is expected to under-perform the Ciwen Media. But the stock apears to be less risky and, when comparing its historical volatility, Crown Advanced Material is 1.18 times less risky than Ciwen Media. The stock trades about -0.26 of its potential returns per unit of risk. The Ciwen Media Co is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 681.00 in Ciwen Media Co on August 28, 2024 and sell it today you would earn a total of 29.00 from holding Ciwen Media Co or generate 4.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Crown Advanced Material vs. Ciwen Media Co
Performance |
| Timeline |
| Crown Advanced Material |
| Ciwen Media |
Crown Advanced and Ciwen Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Crown Advanced and Ciwen Media
The main advantage of trading using opposite Crown Advanced and Ciwen Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Crown Advanced 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.| Crown Advanced vs. Zijin Mining Group | Crown Advanced vs. Wanhua Chemical Group | Crown Advanced vs. Baoshan Iron Steel | Crown Advanced vs. Shandong Gold Mining |
| Ciwen Media vs. Agricultural Bank of | Ciwen Media vs. Industrial and Commercial | Ciwen Media vs. Bank of China | Ciwen Media vs. PetroChina Co Ltd |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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