Correlation Between Anshan Senyuan and Hunan TV
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By analyzing existing cross correlation between Anshan Senyuan Road and Hunan TV Broadcast, you can compare the effects of market volatilities on Anshan Senyuan 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 Anshan Senyuan with a short position of Hunan TV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anshan Senyuan and Hunan TV.
Diversification Opportunities for Anshan Senyuan and Hunan TV
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Anshan and Hunan is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Anshan Senyuan Road 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 Anshan Senyuan 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 Anshan Senyuan Road 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 Anshan Senyuan i.e., Anshan Senyuan and Hunan TV go up and down completely randomly.
Pair Corralation between Anshan Senyuan and Hunan TV
Assuming the 90 days trading horizon Anshan Senyuan Road is expected to generate 1.25 times more return on investment than Hunan TV. However, Anshan Senyuan is 1.25 times more volatile than Hunan TV Broadcast. It trades about -0.35 of its potential returns per unit of risk. Hunan TV Broadcast is currently generating about -0.44 per unit of risk. If you would invest 1,241 in Anshan Senyuan Road on October 12, 2024 and sell it today you would lose (284.00) from holding Anshan Senyuan Road or give up 22.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anshan Senyuan Road vs. Hunan TV Broadcast
Performance |
| Timeline |
| Anshan Senyuan Road |
| Hunan TV Broadcast |
Anshan Senyuan and Hunan TV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anshan Senyuan and Hunan TV
The main advantage of trading using opposite Anshan Senyuan and Hunan TV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anshan Senyuan 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.| Anshan Senyuan vs. Beijing Mainstreets Investment | Anshan Senyuan vs. Ye Chiu Metal | Anshan Senyuan vs. Rising Nonferrous Metals | Anshan Senyuan vs. Guangdong Jingyi Metal |
| Hunan TV vs. Chongqing Road Bridge | Hunan TV vs. Anshan Senyuan Road | Hunan TV vs. Anhui Transport Consulting | Hunan TV vs. Zhengping RoadBridge Constr |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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