Correlation Between Hunan TV and Road Environment
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By analyzing existing cross correlation between Hunan TV Broadcast and Road Environment Technology, you can compare the effects of market volatilities on Hunan TV and Road Environment 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 Road Environment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunan TV and Road Environment.
Diversification Opportunities for Hunan TV and Road Environment
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hunan and Road is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Hunan TV Broadcast and Road Environment Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Road Environment Tec 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 Road Environment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Road Environment Tec has no effect on the direction of Hunan TV i.e., Hunan TV and Road Environment go up and down completely randomly.
Pair Corralation between Hunan TV and Road Environment
Assuming the 90 days trading horizon Hunan TV Broadcast is expected to generate 1.21 times more return on investment than Road Environment. However, Hunan TV is 1.21 times more volatile than Road Environment Technology. It trades about 0.05 of its potential returns per unit of risk. Road Environment Technology is currently generating about -0.1 per unit of risk. If you would invest 600.00 in Hunan TV Broadcast on August 25, 2024 and sell it today you would earn a total of 173.00 from holding Hunan TV Broadcast or generate 28.83% 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. Road Environment Technology
Performance |
| Timeline |
| Hunan TV Broadcast |
| Road Environment Tec |
Hunan TV and Road Environment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunan TV and Road Environment
The main advantage of trading using opposite Hunan TV and Road Environment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunan TV position performs unexpectedly, Road Environment 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 Road Environment will offset losses from the drop in Road Environment's long position.| Hunan TV vs. Nexchip Semiconductor Corp | Hunan TV vs. Juewei Food Co | Hunan TV vs. Jinling Hotel Corp | Hunan TV vs. Southchip Semiconductor Technology |
| Road Environment vs. Cambricon Technologies Corp | Road Environment vs. Loongson Technology Corp | Road Environment vs. Chongqing Road Bridge | Road Environment vs. Shenzhen Fortune Trend |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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