Correlation Between Guocheng Mining and Hunan TV
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By analyzing existing cross correlation between Guocheng Mining Co and Hunan TV Broadcast, you can compare the effects of market volatilities on Guocheng Mining and Hunan TV 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 Guocheng Mining with a short position of Hunan TV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guocheng Mining and Hunan TV.
Diversification Opportunities for Guocheng Mining and Hunan TV
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guocheng and Hunan is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Guocheng Mining Co and Hunan TV Broadcast in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunan TV Broadcast and Guocheng Mining 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 Guocheng Mining Co are associated (or correlated) with Hunan TV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hunan TV Broadcast has no effect on the direction of Guocheng Mining i.e., Guocheng Mining and Hunan TV go up and down completely randomly.
Pair Corralation between Guocheng Mining and Hunan TV
Assuming the 90 days trading horizon Guocheng Mining Co is expected to under-perform the Hunan TV. But the stock apears to be less risky and, when comparing its historical volatility, Guocheng Mining Co is 1.19 times less risky than Hunan TV. The stock trades about -0.01 of its potential returns per unit of risk. The Hunan TV Broadcast is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 513.00 in Hunan TV Broadcast on September 28, 2024 and sell it today you would earn a total of 213.00 from holding Hunan TV Broadcast or generate 41.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Guocheng Mining Co vs. Hunan TV Broadcast
Performance |
| Timeline |
| Guocheng Mining |
| Hunan TV Broadcast |
Guocheng Mining and Hunan TV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guocheng Mining and Hunan TV
The main advantage of trading using opposite Guocheng Mining and Hunan TV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guocheng Mining position performs unexpectedly, Hunan TV 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 Hunan TV will offset losses from the drop in Hunan TV's long position.| Guocheng Mining vs. China State Construction | Guocheng Mining vs. Poly Real Estate | Guocheng Mining vs. China Vanke Co | Guocheng Mining vs. China Merchants Shekou |
| Hunan TV vs. Guocheng Mining Co | Hunan TV vs. Zhengzhou Coal Mining | Hunan TV vs. Dareway Software Co | Hunan TV vs. Shengda Mining Co |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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