Correlation Between China National and Ciwen Media
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By analyzing existing cross correlation between China National Software and Ciwen Media Co, you can compare the effects of market volatilities on China National 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 China National with a short position of Ciwen Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of China National and Ciwen Media.
Diversification Opportunities for China National and Ciwen Media
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Ciwen is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding China National Software and Ciwen Media Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ciwen Media and China National 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 China National Software 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 China National i.e., China National and Ciwen Media go up and down completely randomly.
Pair Corralation between China National and Ciwen Media
Assuming the 90 days trading horizon China National Software is expected to under-perform the Ciwen Media. In addition to that, China National is 1.14 times more volatile than Ciwen Media Co. It trades about -0.08 of its total potential returns per unit of risk. Ciwen Media Co is currently generating about -0.05 per unit of volatility. If you would invest 645.00 in Ciwen Media Co on October 6, 2024 and sell it today you would lose (70.00) from holding Ciwen Media Co or give up 10.85% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
China National Software vs. Ciwen Media Co
Performance |
Timeline |
China National Software |
Ciwen Media |
China National and Ciwen Media Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with China National and Ciwen Media
The main advantage of trading using opposite China National and Ciwen Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China National 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.China National vs. BYD Co Ltd | China National vs. China Mobile Limited | China National vs. Agricultural Bank of | China National vs. Industrial and Commercial |
Ciwen Media vs. Industrial and Commercial | Ciwen Media vs. Agricultural Bank of | Ciwen Media vs. China Construction Bank | Ciwen Media vs. Bank of China |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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