Correlation Between Hunan TV and Tianjin Realty
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By analyzing existing cross correlation between Hunan TV Broadcast and Tianjin Realty Development, you can compare the effects of market volatilities on Hunan TV and Tianjin Realty 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 Tianjin Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunan TV and Tianjin Realty.
Diversification Opportunities for Hunan TV and Tianjin Realty
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Hunan and Tianjin is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Hunan TV Broadcast and Tianjin Realty Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianjin Realty Devel 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 Tianjin Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianjin Realty Devel has no effect on the direction of Hunan TV i.e., Hunan TV and Tianjin Realty go up and down completely randomly.
Pair Corralation between Hunan TV and Tianjin Realty
Assuming the 90 days trading horizon Hunan TV Broadcast is expected to generate 0.62 times more return on investment than Tianjin Realty. However, Hunan TV Broadcast is 1.61 times less risky than Tianjin Realty. It trades about -0.18 of its potential returns per unit of risk. Tianjin Realty Development is currently generating about -0.24 per unit of risk. If you would invest 755.00 in Hunan TV Broadcast on October 25, 2024 and sell it today you would lose (80.00) from holding Hunan TV Broadcast or give up 10.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hunan TV Broadcast vs. Tianjin Realty Development
Performance |
| Timeline |
| Hunan TV Broadcast |
| Tianjin Realty Devel |
Hunan TV and Tianjin Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunan TV and Tianjin Realty
The main advantage of trading using opposite Hunan TV and Tianjin Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunan TV position performs unexpectedly, Tianjin Realty 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 Tianjin Realty will offset losses from the drop in Tianjin Realty's long position.| Hunan TV vs. Industrial and Commercial | Hunan TV vs. Agricultural Bank of | Hunan TV vs. China Construction Bank | Hunan TV vs. Bank of China |
| Tianjin Realty vs. Luolai Home Textile | Tianjin Realty vs. Xiamen Goldenhome Co | Tianjin Realty vs. Fujian Longzhou Transportation | Tianjin Realty vs. Markor International Home |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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