Correlation Between Guangdong Xiongsu and Shaanxi Broadcast
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By analyzing existing cross correlation between Guangdong Xiongsu Technology and Shaanxi Broadcast TV, you can compare the effects of market volatilities on Guangdong Xiongsu and Shaanxi Broadcast 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 Guangdong Xiongsu with a short position of Shaanxi Broadcast. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Xiongsu and Shaanxi Broadcast.
Diversification Opportunities for Guangdong Xiongsu and Shaanxi Broadcast
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guangdong and Shaanxi is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Xiongsu Technology and Shaanxi Broadcast TV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shaanxi Broadcast and Guangdong Xiongsu 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 Guangdong Xiongsu Technology are associated (or correlated) with Shaanxi Broadcast. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shaanxi Broadcast has no effect on the direction of Guangdong Xiongsu i.e., Guangdong Xiongsu and Shaanxi Broadcast go up and down completely randomly.
Pair Corralation between Guangdong Xiongsu and Shaanxi Broadcast
Assuming the 90 days trading horizon Guangdong Xiongsu Technology is expected to under-perform the Shaanxi Broadcast. In addition to that, Guangdong Xiongsu is 1.33 times more volatile than Shaanxi Broadcast TV. It trades about -0.27 of its total potential returns per unit of risk. Shaanxi Broadcast TV is currently generating about -0.01 per unit of volatility. If you would invest 255.00 in Shaanxi Broadcast TV on October 29, 2024 and sell it today you would lose (2.00) from holding Shaanxi Broadcast TV or give up 0.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Xiongsu Technology vs. Shaanxi Broadcast TV
Performance |
| Timeline |
| Guangdong Xiongsu |
| Shaanxi Broadcast |
Guangdong Xiongsu and Shaanxi Broadcast Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Xiongsu and Shaanxi Broadcast
The main advantage of trading using opposite Guangdong Xiongsu and Shaanxi Broadcast positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Xiongsu position performs unexpectedly, Shaanxi Broadcast 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 Shaanxi Broadcast will offset losses from the drop in Shaanxi Broadcast's long position.| Guangdong Xiongsu vs. Ming Yang Smart | Guangdong Xiongsu vs. 159681 | Guangdong Xiongsu vs. 159005 | Guangdong Xiongsu vs. Loctek Ergonomic Technology |
| Shaanxi Broadcast vs. Maccura Biotechnology Co | Shaanxi Broadcast vs. Chengdu Xingrong Investment | Shaanxi Broadcast vs. Xiandai Investment Co | Shaanxi Broadcast vs. Tieling Newcity 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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