Correlation Between Anhui Guofeng and Hunan TV
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By analyzing existing cross correlation between Anhui Guofeng Plastic and Hunan TV Broadcast, you can compare the effects of market volatilities on Anhui Guofeng 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 Anhui Guofeng with a short position of Hunan TV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Guofeng and Hunan TV.
Diversification Opportunities for Anhui Guofeng and Hunan TV
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Anhui and Hunan is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Guofeng Plastic 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 Anhui Guofeng 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 Anhui Guofeng Plastic 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 Anhui Guofeng i.e., Anhui Guofeng and Hunan TV go up and down completely randomly.
Pair Corralation between Anhui Guofeng and Hunan TV
Assuming the 90 days trading horizon Anhui Guofeng Plastic is expected to generate 1.45 times more return on investment than Hunan TV. However, Anhui Guofeng is 1.45 times more volatile than Hunan TV Broadcast. It trades about -0.03 of its potential returns per unit of risk. Hunan TV Broadcast is currently generating about -0.05 per unit of risk. If you would invest 556.00 in Anhui Guofeng Plastic on October 26, 2024 and sell it today you would lose (50.00) from holding Anhui Guofeng Plastic or give up 8.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 97.67% |
| Values | Daily Returns |
Anhui Guofeng Plastic vs. Hunan TV Broadcast
Performance |
| Timeline |
| Anhui Guofeng Plastic |
| Hunan TV Broadcast |
Anhui Guofeng and Hunan TV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Guofeng and Hunan TV
The main advantage of trading using opposite Anhui Guofeng and Hunan TV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Guofeng 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.| Anhui Guofeng vs. Zijin Mining Group | Anhui Guofeng vs. Wanhua Chemical Group | Anhui Guofeng vs. Baoshan Iron Steel | Anhui Guofeng vs. Shandong Gold Mining |
| Hunan TV vs. Spring Airlines Co | Hunan TV vs. Fuda Alloy Materials | Hunan TV vs. Shandong Longquan Pipeline | Hunan TV vs. Anhui Guofeng Plastic |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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