Correlation Between CNVISION MEDIA and Li Ning
Can any of the company-specific risk be diversified away by investing in both CNVISION MEDIA and Li Ning at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining CNVISION MEDIA and Li Ning into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CNVISION MEDIA and Li Ning Company, you can compare the effects of market volatilities on CNVISION MEDIA and Li Ning 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 CNVISION MEDIA with a short position of Li Ning. Check out your portfolio center. Please also check ongoing floating volatility patterns of CNVISION MEDIA and Li Ning.
Diversification Opportunities for CNVISION MEDIA and Li Ning
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CNVISION and LNLB is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding CNVISION MEDIA and Li Ning Company in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Li Ning Company and CNVISION MEDIA 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 CNVISION MEDIA are associated (or correlated) with Li Ning. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Li Ning Company has no effect on the direction of CNVISION MEDIA i.e., CNVISION MEDIA and Li Ning go up and down completely randomly.
Pair Corralation between CNVISION MEDIA and Li Ning
Assuming the 90 days trading horizon CNVISION MEDIA is expected to generate 10.65 times less return on investment than Li Ning. But when comparing it to its historical volatility, CNVISION MEDIA is 1.61 times less risky than Li Ning. It trades about 0.0 of its potential returns per unit of risk. Li Ning Company is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 186.00 in Li Ning Company on October 11, 2024 and sell it today you would earn a total of 12.00 from holding Li Ning Company or generate 6.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CNVISION MEDIA vs. Li Ning Company
Performance |
| Timeline |
| CNVISION MEDIA |
| Li Ning Company |
CNVISION MEDIA and Li Ning Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CNVISION MEDIA and Li Ning
The main advantage of trading using opposite CNVISION MEDIA and Li Ning positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CNVISION MEDIA position performs unexpectedly, Li Ning 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 Li Ning will offset losses from the drop in Li Ning's long position.| CNVISION MEDIA vs. SPARTAN STORES | CNVISION MEDIA vs. QURATE RETAIL INC | CNVISION MEDIA vs. USU Software AG | CNVISION MEDIA vs. Costco Wholesale Corp |
| Li Ning vs. New Residential Investment | Li Ning vs. CNVISION MEDIA | Li Ning vs. Virtus Investment Partners | Li Ning vs. Tencent Music Entertainment |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |