Correlation Between Jiangsu Yanghe and Hunan TV
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By analyzing existing cross correlation between Jiangsu Yanghe Brewery and Hunan TV Broadcast, you can compare the effects of market volatilities on Jiangsu Yanghe and Hunan TV 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 Jiangsu Yanghe with a short position of Hunan TV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Yanghe and Hunan TV.
Diversification Opportunities for Jiangsu Yanghe and Hunan TV
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jiangsu and Hunan is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Yanghe Brewery and Hunan TV Broadcast in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunan TV Broadcast and Jiangsu Yanghe 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 Jiangsu Yanghe Brewery are associated (or correlated) with Hunan TV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hunan TV Broadcast has no effect on the direction of Jiangsu Yanghe i.e., Jiangsu Yanghe and Hunan TV go up and down completely randomly.
Pair Corralation between Jiangsu Yanghe and Hunan TV
Assuming the 90 days trading horizon Jiangsu Yanghe is expected to generate 85.54 times less return on investment than Hunan TV. But when comparing it to its historical volatility, Jiangsu Yanghe Brewery is 3.02 times less risky than Hunan TV. It trades about 0.01 of its potential returns per unit of risk. Hunan TV Broadcast is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 642.00 in Hunan TV Broadcast on November 6, 2024 and sell it today you would earn a total of 77.00 from holding Hunan TV Broadcast or generate 11.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Yanghe Brewery vs. Hunan TV Broadcast
Performance |
| Timeline |
| Jiangsu Yanghe Brewery |
| Hunan TV Broadcast |
Jiangsu Yanghe and Hunan TV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Yanghe and Hunan TV
The main advantage of trading using opposite Jiangsu Yanghe and Hunan TV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Yanghe position performs unexpectedly, Hunan TV 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 Hunan TV will offset losses from the drop in Hunan TV's long position.| Jiangsu Yanghe vs. Guangdong Ellington Electronics | Jiangsu Yanghe vs. Weihai Honglin Electronic | Jiangsu Yanghe vs. Beijing YanDong MicroElectronic | Jiangsu Yanghe vs. Xinya Electronic Co |
| Hunan TV vs. Cambricon Technologies Corp | Hunan TV vs. SGSG Sciencetechnology Co | Hunan TV vs. Loongson Technology Corp | Hunan TV vs. Zhonghang Electronic Measuring |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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