Correlation Between Hunan Investment and Ciwen Media
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By analyzing existing cross correlation between Hunan Investment Group and Ciwen Media Co, you can compare the effects of market volatilities on Hunan Investment 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 Hunan Investment with a short position of Ciwen Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunan Investment and Ciwen Media.
Diversification Opportunities for Hunan Investment and Ciwen Media
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hunan and Ciwen is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Hunan Investment Group and Ciwen Media Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ciwen Media and Hunan Investment 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 Hunan Investment Group 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 Hunan Investment i.e., Hunan Investment and Ciwen Media go up and down completely randomly.
Pair Corralation between Hunan Investment and Ciwen Media
Assuming the 90 days trading horizon Hunan Investment is expected to generate 1.18 times less return on investment than Ciwen Media. In addition to that, Hunan Investment is 1.05 times more volatile than Ciwen Media Co. It trades about 0.2 of its total potential returns per unit of risk. Ciwen Media Co is currently generating about 0.25 per unit of volatility. If you would invest 635.00 in Ciwen Media Co on September 4, 2024 and sell it today you would earn a total of 127.00 from holding Ciwen Media Co or generate 20.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hunan Investment Group vs. Ciwen Media Co
Performance |
| Timeline |
| Hunan Investment |
| Ciwen Media |
Hunan Investment and Ciwen Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunan Investment and Ciwen Media
The main advantage of trading using opposite Hunan Investment and Ciwen Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunan Investment 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.| Hunan Investment vs. Hubeiyichang Transportation Group | Hunan Investment vs. Hainan Haiqi Transportation | Hunan Investment vs. Zhengping RoadBridge Constr | Hunan Investment vs. Great Sun Foods Co |
| Ciwen Media vs. Hoshine Silicon Ind | Ciwen Media vs. Iat Automobile Technology | Ciwen Media vs. China Construction Bank | Ciwen Media vs. Guangzhou KingTeller Technology |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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