Correlation Between Shaanxi Broadcast and Huali Industrial
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By analyzing existing cross correlation between Shaanxi Broadcast TV and Huali Industrial Group, you can compare the effects of market volatilities on Shaanxi Broadcast and Huali Industrial 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 Huali Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shaanxi Broadcast and Huali Industrial.
Diversification Opportunities for Shaanxi Broadcast and Huali Industrial
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shaanxi and Huali is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Shaanxi Broadcast TV and Huali Industrial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huali Industrial 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 Huali Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huali Industrial has no effect on the direction of Shaanxi Broadcast i.e., Shaanxi Broadcast and Huali Industrial go up and down completely randomly.
Pair Corralation between Shaanxi Broadcast and Huali Industrial
Assuming the 90 days trading horizon Shaanxi Broadcast TV is expected to under-perform the Huali Industrial. In addition to that, Shaanxi Broadcast is 1.21 times more volatile than Huali Industrial Group. It trades about -0.04 of its total potential returns per unit of risk. Huali Industrial Group is currently generating about 0.04 per unit of volatility. If you would invest 5,220 in Huali Industrial Group on September 3, 2024 and sell it today you would earn a total of 2,302 from holding Huali Industrial Group or generate 44.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shaanxi Broadcast TV vs. Huali Industrial Group
Performance |
| Timeline |
| Shaanxi Broadcast |
| Huali Industrial |
Shaanxi Broadcast and Huali Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shaanxi Broadcast and Huali Industrial
The main advantage of trading using opposite Shaanxi Broadcast and Huali Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shaanxi Broadcast position performs unexpectedly, Huali Industrial 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 Huali Industrial will offset losses from the drop in Huali Industrial's long position.| Shaanxi Broadcast vs. Gansu Jiu Steel | Shaanxi Broadcast vs. Ming Yang Smart | Shaanxi Broadcast vs. Aba Chemicals Corp | Shaanxi Broadcast vs. Loctek Ergonomic Technology |
| Huali Industrial vs. Jiangsu Financial Leasing | Huali Industrial vs. Suzhou Mingzhi Technology | Huali Industrial vs. Sunny Loan Top | Huali Industrial vs. Guilin Seamild Foods |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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