Correlation Between Hunan TV and Gan Yuan
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By analyzing existing cross correlation between Hunan TV Broadcast and Gan Yuan Foods, you can compare the effects of market volatilities on Hunan TV and Gan Yuan 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 Gan Yuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunan TV and Gan Yuan.
Diversification Opportunities for Hunan TV and Gan Yuan
Poor diversification
The 3 months correlation between Hunan and Gan is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Hunan TV Broadcast and Gan Yuan Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gan Yuan Foods 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 Gan Yuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gan Yuan Foods has no effect on the direction of Hunan TV i.e., Hunan TV and Gan Yuan go up and down completely randomly.
Pair Corralation between Hunan TV and Gan Yuan
Assuming the 90 days trading horizon Hunan TV Broadcast is expected to under-perform the Gan Yuan. In addition to that, Hunan TV is 1.12 times more volatile than Gan Yuan Foods. It trades about -0.12 of its total potential returns per unit of risk. Gan Yuan Foods is currently generating about 0.32 per unit of volatility. If you would invest 7,462 in Gan Yuan Foods on September 27, 2024 and sell it today you would earn a total of 1,423 from holding Gan Yuan Foods or generate 19.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hunan TV Broadcast vs. Gan Yuan Foods
Performance |
| Timeline |
| Hunan TV Broadcast |
| Gan Yuan Foods |
Hunan TV and Gan Yuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunan TV and Gan Yuan
The main advantage of trading using opposite Hunan TV and Gan Yuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunan TV position performs unexpectedly, Gan Yuan 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 Gan Yuan will offset losses from the drop in Gan Yuan's long position.| Hunan TV vs. Beijing Kaiwen Education | Hunan TV vs. Anhui Xinhua Media | Hunan TV vs. Dook Media Group | Hunan TV vs. Heilongjiang Publishing Media |
| Gan Yuan vs. Fujian Longzhou Transportation | Gan Yuan vs. Hunan TV Broadcast | Gan Yuan vs. Anhui Transport Consulting | Gan Yuan vs. Shanghai Broadband Technology |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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