Correlation Between Hunan TV and Shenzhen Noposion
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By analyzing existing cross correlation between Hunan TV Broadcast and Shenzhen Noposion Agrochemicals, you can compare the effects of market volatilities on Hunan TV and Shenzhen Noposion 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 Shenzhen Noposion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunan TV and Shenzhen Noposion.
Diversification Opportunities for Hunan TV and Shenzhen Noposion
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hunan and Shenzhen is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Hunan TV Broadcast and Shenzhen Noposion Agrochemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Noposion 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 Shenzhen Noposion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Noposion has no effect on the direction of Hunan TV i.e., Hunan TV and Shenzhen Noposion go up and down completely randomly.
Pair Corralation between Hunan TV and Shenzhen Noposion
Assuming the 90 days trading horizon Hunan TV Broadcast is expected to generate 2.35 times more return on investment than Shenzhen Noposion. However, Hunan TV is 2.35 times more volatile than Shenzhen Noposion Agrochemicals. It trades about 0.07 of its potential returns per unit of risk. Shenzhen Noposion Agrochemicals is currently generating about -0.02 per unit of risk. If you would invest 759.00 in Hunan TV Broadcast on August 29, 2024 and sell it today you would earn a total of 39.00 from holding Hunan TV Broadcast or generate 5.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hunan TV Broadcast vs. Shenzhen Noposion Agrochemical
Performance |
| Timeline |
| Hunan TV Broadcast |
| Shenzhen Noposion |
Hunan TV and Shenzhen Noposion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunan TV and Shenzhen Noposion
The main advantage of trading using opposite Hunan TV and Shenzhen Noposion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunan TV position performs unexpectedly, Shenzhen Noposion 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 Shenzhen Noposion will offset losses from the drop in Shenzhen Noposion's long position.| Hunan TV vs. Postal Savings Bank | Hunan TV vs. Duzhe Publishing Media | Hunan TV vs. Metro Investment Development | Hunan TV vs. Jiangsu Yueda Investment |
| Shenzhen Noposion vs. Baoshan Iron Steel | Shenzhen Noposion vs. Shandong Gold Mining | Shenzhen Noposion vs. Rongsheng Petrochemical Co | Shenzhen Noposion vs. Inner Mongolia BaoTou |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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