Correlation Between Shaanxi Broadcast and Chengdu Xinzhu
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By analyzing existing cross correlation between Shaanxi Broadcast TV and Chengdu Xinzhu RoadBridge, you can compare the effects of market volatilities on Shaanxi Broadcast and Chengdu Xinzhu 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 Shaanxi Broadcast with a short position of Chengdu Xinzhu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shaanxi Broadcast and Chengdu Xinzhu.
Diversification Opportunities for Shaanxi Broadcast and Chengdu Xinzhu
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shaanxi and Chengdu is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Shaanxi Broadcast TV and Chengdu Xinzhu RoadBridge in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu Xinzhu RoadBridge and Shaanxi Broadcast 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 Shaanxi Broadcast TV are associated (or correlated) with Chengdu Xinzhu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu Xinzhu RoadBridge has no effect on the direction of Shaanxi Broadcast i.e., Shaanxi Broadcast and Chengdu Xinzhu go up and down completely randomly.
Pair Corralation between Shaanxi Broadcast and Chengdu Xinzhu
Assuming the 90 days trading horizon Shaanxi Broadcast TV is expected to generate 1.26 times more return on investment than Chengdu Xinzhu. However, Shaanxi Broadcast is 1.26 times more volatile than Chengdu Xinzhu RoadBridge. It trades about 0.05 of its potential returns per unit of risk. Chengdu Xinzhu RoadBridge is currently generating about -0.1 per unit of risk. If you would invest 260.00 in Shaanxi Broadcast TV on August 28, 2024 and sell it today you would earn a total of 7.00 from holding Shaanxi Broadcast TV or generate 2.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shaanxi Broadcast TV vs. Chengdu Xinzhu RoadBridge
Performance |
| Timeline |
| Shaanxi Broadcast |
| Chengdu Xinzhu RoadBridge |
Shaanxi Broadcast and Chengdu Xinzhu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shaanxi Broadcast and Chengdu Xinzhu
The main advantage of trading using opposite Shaanxi Broadcast and Chengdu Xinzhu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shaanxi Broadcast position performs unexpectedly, Chengdu Xinzhu 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 Chengdu Xinzhu will offset losses from the drop in Chengdu Xinzhu's long position.| Shaanxi Broadcast vs. Pengxin International Mining | Shaanxi Broadcast vs. Xinjiang Baodi Mining | Shaanxi Broadcast vs. Gansu Yasheng Industrial | Shaanxi Broadcast vs. Ye Chiu Metal |
| Chengdu Xinzhu vs. Guangdong Marubi Biotechnology | Chengdu Xinzhu vs. Xinjiang Baodi Mining | Chengdu Xinzhu vs. Everdisplay Optronics Shanghai | Chengdu Xinzhu vs. Hainan Mining Co |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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