Correlation Between Hunan TV and Sunny Loan
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By analyzing existing cross correlation between Hunan TV Broadcast and Sunny Loan Top, you can compare the effects of market volatilities on Hunan TV and Sunny Loan 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 Sunny Loan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunan TV and Sunny Loan.
Diversification Opportunities for Hunan TV and Sunny Loan
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hunan and Sunny is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Hunan TV Broadcast and Sunny Loan Top in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunny Loan Top 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 Sunny Loan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sunny Loan Top has no effect on the direction of Hunan TV i.e., Hunan TV and Sunny Loan go up and down completely randomly.
Pair Corralation between Hunan TV and Sunny Loan
Assuming the 90 days trading horizon Hunan TV Broadcast is expected to under-perform the Sunny Loan. But the stock apears to be less risky and, when comparing its historical volatility, Hunan TV Broadcast is 1.58 times less risky than Sunny Loan. The stock trades about -0.5 of its potential returns per unit of risk. The Sunny Loan Top is currently generating about -0.28 of returns per unit of risk over similar time horizon. If you would invest 1,135 in Sunny Loan Top on October 16, 2024 and sell it today you would lose (266.00) from holding Sunny Loan Top or give up 23.44% 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. Sunny Loan Top
Performance |
| Timeline |
| Hunan TV Broadcast |
| Sunny Loan Top |
Hunan TV and Sunny Loan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunan TV and Sunny Loan
The main advantage of trading using opposite Hunan TV and Sunny Loan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunan TV position performs unexpectedly, Sunny Loan 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 Sunny Loan will offset losses from the drop in Sunny Loan's long position.| Hunan TV vs. Qingdao Foods Co | Hunan TV vs. Youyou Foods Co | Hunan TV vs. Shenzhen Topway Video | Hunan TV vs. Gan Yuan Foods |
| Sunny Loan vs. Vohringer Home Technology | Sunny Loan vs. Xiamen Goldenhome Co | Sunny Loan vs. Beijing Kingsoft Office | Sunny Loan vs. Eastern Communications 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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