Correlation Between Shaanxi Broadcast and Marssenger Kitchenware
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By analyzing existing cross correlation between Shaanxi Broadcast TV and Marssenger Kitchenware Co, you can compare the effects of market volatilities on Shaanxi Broadcast and Marssenger Kitchenware 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 Marssenger Kitchenware. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shaanxi Broadcast and Marssenger Kitchenware.
Diversification Opportunities for Shaanxi Broadcast and Marssenger Kitchenware
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shaanxi and Marssenger is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Shaanxi Broadcast TV and Marssenger Kitchenware Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marssenger Kitchenware 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 Marssenger Kitchenware. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marssenger Kitchenware has no effect on the direction of Shaanxi Broadcast i.e., Shaanxi Broadcast and Marssenger Kitchenware go up and down completely randomly.
Pair Corralation between Shaanxi Broadcast and Marssenger Kitchenware
Assuming the 90 days trading horizon Shaanxi Broadcast TV is expected to generate 0.41 times more return on investment than Marssenger Kitchenware. However, Shaanxi Broadcast TV is 2.42 times less risky than Marssenger Kitchenware. It trades about -0.01 of its potential returns per unit of risk. Marssenger Kitchenware Co is currently generating about -0.04 per unit of risk. If you would invest 255.00 in Shaanxi Broadcast TV on October 30, 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 | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shaanxi Broadcast TV vs. Marssenger Kitchenware Co
Performance |
| Timeline |
| Shaanxi Broadcast |
| Marssenger Kitchenware |
Shaanxi Broadcast and Marssenger Kitchenware Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shaanxi Broadcast and Marssenger Kitchenware
The main advantage of trading using opposite Shaanxi Broadcast and Marssenger Kitchenware positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shaanxi Broadcast position performs unexpectedly, Marssenger Kitchenware 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 Marssenger Kitchenware will offset losses from the drop in Marssenger Kitchenware's long position.| Shaanxi Broadcast vs. Jiangsu Yueda Investment | Shaanxi Broadcast vs. Luyin Investment Group | Shaanxi Broadcast vs. Shaanxi Energy Investment | Shaanxi Broadcast vs. Jiangsu Hoperun Software |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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