Correlation Between Hunan TV and Anji Foodstuff
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By analyzing existing cross correlation between Hunan TV Broadcast and Anji Foodstuff Co, you can compare the effects of market volatilities on Hunan TV and Anji Foodstuff 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 Anji Foodstuff. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunan TV and Anji Foodstuff.
Diversification Opportunities for Hunan TV and Anji Foodstuff
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hunan and Anji is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Hunan TV Broadcast and Anji Foodstuff Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anji Foodstuff 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 Anji Foodstuff. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anji Foodstuff has no effect on the direction of Hunan TV i.e., Hunan TV and Anji Foodstuff go up and down completely randomly.
Pair Corralation between Hunan TV and Anji Foodstuff
Assuming the 90 days trading horizon Hunan TV Broadcast is expected to generate 1.2 times more return on investment than Anji Foodstuff. However, Hunan TV is 1.2 times more volatile than Anji Foodstuff Co. It trades about 0.03 of its potential returns per unit of risk. Anji Foodstuff Co is currently generating about -0.01 per unit of risk. If you would invest 533.00 in Hunan TV Broadcast on October 14, 2024 and sell it today you would earn a total of 105.00 from holding Hunan TV Broadcast or generate 19.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hunan TV Broadcast vs. Anji Foodstuff Co
Performance |
| Timeline |
| Hunan TV Broadcast |
| Anji Foodstuff |
Hunan TV and Anji Foodstuff Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunan TV and Anji Foodstuff
The main advantage of trading using opposite Hunan TV and Anji Foodstuff positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunan TV position performs unexpectedly, Anji Foodstuff 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 Anji Foodstuff will offset losses from the drop in Anji Foodstuff's long position.| Hunan TV vs. Shenzhen Clou Electronics | Hunan TV vs. Jiangyin Jianghua Microelectronics | Hunan TV vs. Anhui Shiny Electronic | Hunan TV vs. Bloomage Biotechnology Corp |
| Anji Foodstuff vs. Fiberhome Telecommunication Technologies | Anji Foodstuff vs. Hunan TV Broadcast | Anji Foodstuff vs. Huizhou Speed Wireless | Anji Foodstuff vs. Guangxi Wuzhou Communications |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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