Correlation Between Hunan TV and Jiangsu Yanghe
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By analyzing existing cross correlation between Hunan TV Broadcast and Jiangsu Yanghe Brewery, you can compare the effects of market volatilities on Hunan TV and Jiangsu Yanghe 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 Jiangsu Yanghe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunan TV and Jiangsu Yanghe.
Diversification Opportunities for Hunan TV and Jiangsu Yanghe
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hunan and Jiangsu is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Hunan TV Broadcast and Jiangsu Yanghe Brewery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Yanghe Brewery 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 Jiangsu Yanghe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Yanghe Brewery has no effect on the direction of Hunan TV i.e., Hunan TV and Jiangsu Yanghe go up and down completely randomly.
Pair Corralation between Hunan TV and Jiangsu Yanghe
Assuming the 90 days trading horizon Hunan TV Broadcast is expected to generate 1.64 times more return on investment than Jiangsu Yanghe. However, Hunan TV is 1.64 times more volatile than Jiangsu Yanghe Brewery. It trades about 0.24 of its potential returns per unit of risk. Jiangsu Yanghe Brewery is currently generating about 0.11 per unit of risk. If you would invest 476.00 in Hunan TV Broadcast on September 12, 2024 and sell it today you would earn a total of 385.00 from holding Hunan TV Broadcast or generate 80.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hunan TV Broadcast vs. Jiangsu Yanghe Brewery
Performance |
| Timeline |
| Hunan TV Broadcast |
| Jiangsu Yanghe Brewery |
Hunan TV and Jiangsu Yanghe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunan TV and Jiangsu Yanghe
The main advantage of trading using opposite Hunan TV and Jiangsu Yanghe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunan TV position performs unexpectedly, Jiangsu Yanghe 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 Jiangsu Yanghe will offset losses from the drop in Jiangsu Yanghe's long position.| Hunan TV vs. BYD Co Ltd | Hunan TV vs. China Mobile Limited | Hunan TV vs. Agricultural Bank of | Hunan TV vs. Industrial and Commercial |
| Jiangsu Yanghe vs. China Life Insurance | Jiangsu Yanghe vs. Cinda Securities Co | Jiangsu Yanghe vs. Piotech Inc A | Jiangsu Yanghe vs. Dongxing Sec 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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