Correlation Between Hunan TV and Kuangda Technology
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By analyzing existing cross correlation between Hunan TV Broadcast and Kuangda Technology Group, you can compare the effects of market volatilities on Hunan TV and Kuangda Technology 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 Kuangda Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunan TV and Kuangda Technology.
Diversification Opportunities for Hunan TV and Kuangda Technology
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hunan and Kuangda is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Hunan TV Broadcast and Kuangda Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kuangda Technology 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 Kuangda Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kuangda Technology has no effect on the direction of Hunan TV i.e., Hunan TV and Kuangda Technology go up and down completely randomly.
Pair Corralation between Hunan TV and Kuangda Technology
Assuming the 90 days trading horizon Hunan TV Broadcast is expected to generate 1.36 times more return on investment than Kuangda Technology. However, Hunan TV is 1.36 times more volatile than Kuangda Technology Group. It trades about 0.0 of its potential returns per unit of risk. Kuangda Technology Group is currently generating about -0.08 per unit of risk. If you would invest 730.00 in Hunan TV Broadcast on October 26, 2024 and sell it today you would lose (7.00) from holding Hunan TV Broadcast or give up 0.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hunan TV Broadcast vs. Kuangda Technology Group
Performance |
| Timeline |
| Hunan TV Broadcast |
| Kuangda Technology |
Hunan TV and Kuangda Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunan TV and Kuangda Technology
The main advantage of trading using opposite Hunan TV and Kuangda Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunan TV position performs unexpectedly, Kuangda Technology 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 Kuangda Technology will offset losses from the drop in Kuangda Technology's long position.| Hunan TV vs. Spring Airlines Co | Hunan TV vs. Fuda Alloy Materials | Hunan TV vs. Shandong Longquan Pipeline | Hunan TV vs. Anhui Guofeng Plastic |
| Kuangda Technology vs. PetroChina Co Ltd | Kuangda Technology vs. China Mobile Limited | Kuangda Technology vs. CNOOC Limited | Kuangda Technology vs. Ping An Insurance |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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