Correlation Between China Reform and Shaanxi Broadcast
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By analyzing existing cross correlation between China Reform Health and Shaanxi Broadcast TV, you can compare the effects of market volatilities on China Reform and Shaanxi Broadcast 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 Reform with a short position of Shaanxi Broadcast. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Reform and Shaanxi Broadcast.
Diversification Opportunities for China Reform and Shaanxi Broadcast
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between China and Shaanxi is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding China Reform Health and Shaanxi Broadcast TV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shaanxi Broadcast and China Reform 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 Reform Health are associated (or correlated) with Shaanxi Broadcast. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shaanxi Broadcast has no effect on the direction of China Reform i.e., China Reform and Shaanxi Broadcast go up and down completely randomly.
Pair Corralation between China Reform and Shaanxi Broadcast
Assuming the 90 days trading horizon China Reform Health is expected to generate 1.14 times more return on investment than Shaanxi Broadcast. However, China Reform is 1.14 times more volatile than Shaanxi Broadcast TV. It trades about 0.01 of its potential returns per unit of risk. Shaanxi Broadcast TV is currently generating about -0.05 per unit of risk. If you would invest 1,054 in China Reform Health on October 11, 2024 and sell it today you would lose (38.00) from holding China Reform Health or give up 3.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Reform Health vs. Shaanxi Broadcast TV
Performance |
| Timeline |
| China Reform Health |
| Shaanxi Broadcast |
China Reform and Shaanxi Broadcast Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Reform and Shaanxi Broadcast
The main advantage of trading using opposite China Reform and Shaanxi Broadcast positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Reform position performs unexpectedly, Shaanxi Broadcast 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 Shaanxi Broadcast will offset losses from the drop in Shaanxi Broadcast's long position.| China Reform vs. Iat Automobile Technology | China Reform vs. Cultural Investment Holdings | China Reform vs. Air China Ltd | China Reform vs. Shanghai Material Trading |
| Shaanxi Broadcast vs. Nanxing Furniture Machinery | Shaanxi Broadcast vs. Shaanxi Construction Machinery | Shaanxi Broadcast vs. Shenwu Energy Saving | Shaanxi Broadcast vs. Sinomach General Machinery |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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