Correlation Between China Publishing and INKON Life
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By analyzing existing cross correlation between China Publishing Media and INKON Life Technology, you can compare the effects of market volatilities on China Publishing and INKON Life 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 Publishing with a short position of INKON Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Publishing and INKON Life.
Diversification Opportunities for China Publishing and INKON Life
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and INKON is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding China Publishing Media and INKON Life Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INKON Life Technology and China 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 China Publishing Media are associated (or correlated) with INKON Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INKON Life Technology has no effect on the direction of China Publishing i.e., China Publishing and INKON Life go up and down completely randomly.
Pair Corralation between China Publishing and INKON Life
Assuming the 90 days trading horizon China Publishing Media is expected to under-perform the INKON Life. In addition to that, China Publishing is 1.3 times more volatile than INKON Life Technology. It trades about -0.16 of its total potential returns per unit of risk. INKON Life Technology is currently generating about -0.11 per unit of volatility. If you would invest 973.00 in INKON Life Technology on September 25, 2024 and sell it today you would lose (48.00) from holding INKON Life Technology or give up 4.93% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
China Publishing Media vs. INKON Life Technology
Performance |
Timeline |
China Publishing Media |
INKON Life Technology |
China Publishing and INKON Life Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with China Publishing and INKON Life
The main advantage of trading using opposite China Publishing and INKON Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Publishing position performs unexpectedly, INKON Life 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 INKON Life will offset losses from the drop in INKON Life's long position.China Publishing vs. Offshore Oil Engineering | China Publishing vs. Bus Online Co | China Publishing vs. Gansu Huangtai Wine marketing | China Publishing vs. Sportsoul Co Ltd |
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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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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