Correlation Between China Enterprise and Hengdian Entertainment
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Enterprise Co and Hengdian Entertainment Co, you can compare the effects of market volatilities on China Enterprise and Hengdian Entertainment 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 China Enterprise with a short position of Hengdian Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Enterprise and Hengdian Entertainment.
Diversification Opportunities for China Enterprise and Hengdian Entertainment
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between China and Hengdian is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding China Enterprise Co and Hengdian Entertainment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hengdian Entertainment and China Enterprise 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 China Enterprise Co are associated (or correlated) with Hengdian Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hengdian Entertainment has no effect on the direction of China Enterprise i.e., China Enterprise and Hengdian Entertainment go up and down completely randomly.
Pair Corralation between China Enterprise and Hengdian Entertainment
Assuming the 90 days trading horizon China Enterprise Co is expected to generate 1.01 times more return on investment than Hengdian Entertainment. However, China Enterprise is 1.01 times more volatile than Hengdian Entertainment Co. It trades about 0.0 of its potential returns per unit of risk. Hengdian Entertainment Co is currently generating about -0.01 per unit of risk. If you would invest 306.00 in China Enterprise Co on October 30, 2024 and sell it today you would lose (38.00) from holding China Enterprise Co or give up 12.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.61% |
| Values | Daily Returns |
China Enterprise Co vs. Hengdian Entertainment Co
Performance |
| Timeline |
| China Enterprise |
| Hengdian Entertainment |
China Enterprise and Hengdian Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Enterprise and Hengdian Entertainment
The main advantage of trading using opposite China Enterprise and Hengdian Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Enterprise position performs unexpectedly, Hengdian Entertainment 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 Hengdian Entertainment will offset losses from the drop in Hengdian Entertainment's long position.| China Enterprise vs. Shenzhen Zqgame | China Enterprise vs. Henan Shuanghui Investment | China Enterprise vs. Cansino Biologics | China Enterprise vs. Citic Offshore Helicopter |
| Hengdian Entertainment vs. GRG Banking Equipment | Hengdian Entertainment vs. Tongling Nonferrous Metals | Hengdian Entertainment vs. Industrial Bank Co | Hengdian Entertainment vs. Panda Financial Holding |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |