Correlation Between Hunan TV and Industrial
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By analyzing existing cross correlation between Hunan TV Broadcast and Industrial and Commercial, you can compare the effects of market volatilities on Hunan TV and Industrial 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 Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunan TV and Industrial.
Diversification Opportunities for Hunan TV and Industrial
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Hunan and Industrial is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Hunan TV Broadcast and Industrial and Commercial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Industrial and Commercial 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 Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Industrial and Commercial has no effect on the direction of Hunan TV i.e., Hunan TV and Industrial go up and down completely randomly.
Pair Corralation between Hunan TV and Industrial
Assuming the 90 days trading horizon Hunan TV Broadcast is expected to generate 2.9 times more return on investment than Industrial. However, Hunan TV is 2.9 times more volatile than Industrial and Commercial. It trades about 0.05 of its potential returns per unit of risk. Industrial and Commercial is currently generating about 0.09 per unit of risk. If you would invest 604.00 in Hunan TV Broadcast on September 4, 2024 and sell it today you would earn a total of 235.00 from holding Hunan TV Broadcast or generate 38.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hunan TV Broadcast vs. Industrial and Commercial
Performance |
| Timeline |
| Hunan TV Broadcast |
| Industrial and Commercial |
Hunan TV and Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunan TV and Industrial
The main advantage of trading using opposite Hunan TV and Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunan TV position performs unexpectedly, Industrial 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 Industrial will offset losses from the drop in Industrial's long position.| Hunan TV vs. Tianjin Silvery Dragon | Hunan TV vs. Sunny Loan Top | Hunan TV vs. China Express Airlines | Hunan TV vs. Pengxin International Mining |
| Industrial vs. China Life Insurance | Industrial vs. Shenzhen MYS Environmental | Industrial vs. Anhui Fuhuang Steel | Industrial vs. China Sports Industry |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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