Correlation Between COL Digital and Guangxi Guiguan
Specify exactly 2 symbols:
By analyzing existing cross correlation between COL Digital Publishing and Guangxi Guiguan Electric, you can compare the effects of market volatilities on COL Digital and Guangxi Guiguan 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 COL Digital with a short position of Guangxi Guiguan. Check out your portfolio center. Please also check ongoing floating volatility patterns of COL Digital and Guangxi Guiguan.
Diversification Opportunities for COL Digital and Guangxi Guiguan
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between COL and Guangxi is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding COL Digital Publishing and Guangxi Guiguan Electric in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangxi Guiguan Electric and COL Digital 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 COL Digital Publishing are associated (or correlated) with Guangxi Guiguan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangxi Guiguan Electric has no effect on the direction of COL Digital i.e., COL Digital and Guangxi Guiguan go up and down completely randomly.
Pair Corralation between COL Digital and Guangxi Guiguan
Assuming the 90 days trading horizon COL Digital Publishing is expected to generate 3.26 times more return on investment than Guangxi Guiguan. However, COL Digital is 3.26 times more volatile than Guangxi Guiguan Electric. It trades about 0.2 of its potential returns per unit of risk. Guangxi Guiguan Electric is currently generating about 0.09 per unit of risk. If you would invest 1,676 in COL Digital Publishing on September 12, 2024 and sell it today you would earn a total of 1,454 from holding COL Digital Publishing or generate 86.75% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
COL Digital Publishing vs. Guangxi Guiguan Electric
Performance |
Timeline |
COL Digital Publishing |
Guangxi Guiguan Electric |
COL Digital and Guangxi Guiguan Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with COL Digital and Guangxi Guiguan
The main advantage of trading using opposite COL Digital and Guangxi Guiguan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COL Digital position performs unexpectedly, Guangxi Guiguan 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 Guangxi Guiguan will offset losses from the drop in Guangxi Guiguan's long position.COL Digital vs. Chengdu Kanghua Biological | COL Digital vs. Beijing Wantai Biological | COL Digital vs. Suzhou Novoprotein Scientific | COL Digital vs. Aluminum Corp of |
Guangxi Guiguan vs. Guangzhou Tinci Materials | Guangxi Guiguan vs. Ping An Insurance | Guangxi Guiguan vs. Ningxia Building Materials | Guangxi Guiguan vs. Hangzhou Gaoxin Rubber |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
Global Correlations Find global opportunities by holding instruments from different markets | |
Content Syndication Quickly integrate customizable finance content to your own investment portal | |
Bonds Directory Find actively traded corporate debentures issued by US companies | |
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |