Correlation Between Shandong Longquan and Hunan TV
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By analyzing existing cross correlation between Shandong Longquan Pipeline and Hunan TV Broadcast, you can compare the effects of market volatilities on Shandong Longquan 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 Shandong Longquan with a short position of Hunan TV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Longquan and Hunan TV.
Diversification Opportunities for Shandong Longquan and Hunan TV
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shandong and Hunan is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Longquan Pipeline 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 Shandong Longquan 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 Shandong Longquan Pipeline 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 Shandong Longquan i.e., Shandong Longquan and Hunan TV go up and down completely randomly.
Pair Corralation between Shandong Longquan and Hunan TV
Assuming the 90 days trading horizon Shandong Longquan is expected to generate 2.95 times less return on investment than Hunan TV. But when comparing it to its historical volatility, Shandong Longquan Pipeline is 1.18 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 0.03 of returns per unit of risk over similar time horizon. If you would invest 549.00 in Hunan TV Broadcast on November 5, 2024 and sell it today you would earn a total of 170.00 from holding Hunan TV Broadcast or generate 30.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Longquan Pipeline vs. Hunan TV Broadcast
Performance |
| Timeline |
| Shandong Longquan |
| Hunan TV Broadcast |
Shandong Longquan and Hunan TV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Longquan and Hunan TV
The main advantage of trading using opposite Shandong Longquan and Hunan TV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Longquan 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.| Shandong Longquan vs. Lander Sports Development | Shandong Longquan vs. Changjiang Publishing Media | Shandong Longquan vs. Threes Company Media | Shandong Longquan vs. Shandong Publishing Media |
| Hunan TV vs. Tieling Newcity Investment | Hunan TV vs. China Mobile Limited | Hunan TV vs. Shaanxi Energy Investment | Hunan TV vs. Xiamen Insight Investment |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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