Correlation Between Hunan TV and Hongrun Construction
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By analyzing existing cross correlation between Hunan TV Broadcast and Hongrun Construction Group, you can compare the effects of market volatilities on Hunan TV and Hongrun Construction 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 Hongrun Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunan TV and Hongrun Construction.
Diversification Opportunities for Hunan TV and Hongrun Construction
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Hunan and Hongrun is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Hunan TV Broadcast and Hongrun Construction Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hongrun Construction 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 Hongrun Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hongrun Construction has no effect on the direction of Hunan TV i.e., Hunan TV and Hongrun Construction go up and down completely randomly.
Pair Corralation between Hunan TV and Hongrun Construction
Assuming the 90 days trading horizon Hunan TV Broadcast is expected to generate 1.52 times more return on investment than Hongrun Construction. However, Hunan TV is 1.52 times more volatile than Hongrun Construction Group. It trades about 0.03 of its potential returns per unit of risk. Hongrun Construction Group is currently generating about 0.01 per unit of risk. If you would invest 534.00 in Hunan TV Broadcast on October 11, 2024 and sell it today you would earn a total of 132.00 from holding Hunan TV Broadcast or generate 24.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hunan TV Broadcast vs. Hongrun Construction Group
Performance |
| Timeline |
| Hunan TV Broadcast |
| Hongrun Construction |
Hunan TV and Hongrun Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunan TV and Hongrun Construction
The main advantage of trading using opposite Hunan TV and Hongrun Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunan TV position performs unexpectedly, Hongrun Construction 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 Hongrun Construction will offset losses from the drop in Hongrun Construction's long position.| Hunan TV vs. Chongqing Road Bridge | Hunan TV vs. Anshan Senyuan Road | Hunan TV vs. Anhui Transport Consulting | Hunan TV vs. Zhengping RoadBridge Constr |
| Hongrun Construction vs. Aba Chemicals Corp | Hongrun Construction vs. Hunan TV Broadcast | Hongrun Construction vs. Zhongshan Broad Ocean Motor | Hongrun Construction vs. Chongqing Road Bridge |
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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