Correlation Between Hunan TV and Lonkey Industrial
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By analyzing existing cross correlation between Hunan TV Broadcast and Lonkey Industrial Co, you can compare the effects of market volatilities on Hunan TV and Lonkey Industrial 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 TV with a short position of Lonkey Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunan TV and Lonkey Industrial.
Diversification Opportunities for Hunan TV and Lonkey Industrial
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hunan and Lonkey is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Hunan TV Broadcast and Lonkey Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lonkey Industrial and Hunan TV 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 TV Broadcast are associated (or correlated) with Lonkey Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lonkey Industrial has no effect on the direction of Hunan TV i.e., Hunan TV and Lonkey Industrial go up and down completely randomly.
Pair Corralation between Hunan TV and Lonkey Industrial
Assuming the 90 days trading horizon Hunan TV Broadcast is expected to under-perform the Lonkey Industrial. In addition to that, Hunan TV is 1.03 times more volatile than Lonkey Industrial Co. It trades about -0.49 of its total potential returns per unit of risk. Lonkey Industrial Co is currently generating about -0.38 per unit of volatility. If you would invest 358.00 in Lonkey Industrial Co on October 12, 2024 and sell it today you would lose (72.00) from holding Lonkey Industrial Co or give up 20.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hunan TV Broadcast vs. Lonkey Industrial Co
Performance |
| Timeline |
| Hunan TV Broadcast |
| Lonkey Industrial |
Hunan TV and Lonkey Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunan TV and Lonkey Industrial
The main advantage of trading using opposite Hunan TV and Lonkey Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunan TV position performs unexpectedly, Lonkey Industrial 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 Lonkey Industrial will offset losses from the drop in Lonkey Industrial's long position.| Hunan TV vs. GreenTech Environmental Co | Hunan TV vs. Penyao Environmental Protection | Hunan TV vs. Longxing Chemical Stock | Hunan TV vs. Guizhou Chanhen Chemical |
| Lonkey Industrial vs. Sichuan Fulin Transportation | Lonkey Industrial vs. Anhui Huaren Health | Lonkey Industrial vs. Hunan TV Broadcast | Lonkey Industrial vs. Everjoy Health Group |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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