Correlation Between V V and Shaanxi Broadcast
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By analyzing existing cross correlation between V V Food and Shaanxi Broadcast TV, you can compare the effects of market volatilities on V V 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 V V with a short position of Shaanxi Broadcast. Check out your portfolio center. Please also check ongoing floating volatility patterns of V V and Shaanxi Broadcast.
Diversification Opportunities for V V and Shaanxi Broadcast
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 600300 and Shaanxi is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding V V Food and Shaanxi Broadcast TV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shaanxi Broadcast and V V 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 V V Food 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 V V i.e., V V and Shaanxi Broadcast go up and down completely randomly.
Pair Corralation between V V and Shaanxi Broadcast
Assuming the 90 days trading horizon V V Food is expected to generate 1.36 times more return on investment than Shaanxi Broadcast. However, V V is 1.36 times more volatile than Shaanxi Broadcast TV. It trades about -0.35 of its potential returns per unit of risk. Shaanxi Broadcast TV is currently generating about -0.54 per unit of risk. If you would invest 386.00 in V V Food on October 16, 2024 and sell it today you would lose (86.00) from holding V V Food or give up 22.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
V V Food vs. Shaanxi Broadcast TV
Performance |
| Timeline |
| V V Food |
| Shaanxi Broadcast |
V V and Shaanxi Broadcast Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with V V and Shaanxi Broadcast
The main advantage of trading using opposite V V and Shaanxi Broadcast positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if V V 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.| V V vs. Nanjing Putian Telecommunications | V V vs. Beijing Kingsoft Office | V V vs. Bus Online Co | V V vs. Songz Automobile Air |
| Shaanxi Broadcast vs. Chengdu Xinzhu RoadBridge | Shaanxi Broadcast vs. Fibocom Wireless | Shaanxi Broadcast vs. Songz Automobile Air | Shaanxi Broadcast vs. Hainan Haiqi Transportation |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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