Correlation Between Guizhou BroadcastingTV and Shenzhen Topway
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By analyzing existing cross correlation between Guizhou BroadcastingTV Info and Shenzhen Topway Video, you can compare the effects of market volatilities on Guizhou BroadcastingTV and Shenzhen Topway 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 Guizhou BroadcastingTV with a short position of Shenzhen Topway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guizhou BroadcastingTV and Shenzhen Topway.
Diversification Opportunities for Guizhou BroadcastingTV and Shenzhen Topway
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guizhou and Shenzhen is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Guizhou BroadcastingTV Info and Shenzhen Topway Video in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Topway Video and Guizhou BroadcastingTV 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 Guizhou BroadcastingTV Info are associated (or correlated) with Shenzhen Topway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Topway Video has no effect on the direction of Guizhou BroadcastingTV i.e., Guizhou BroadcastingTV and Shenzhen Topway go up and down completely randomly.
Pair Corralation between Guizhou BroadcastingTV and Shenzhen Topway
Assuming the 90 days trading horizon Guizhou BroadcastingTV Info is expected to under-perform the Shenzhen Topway. But the stock apears to be less risky and, when comparing its historical volatility, Guizhou BroadcastingTV Info is 1.12 times less risky than Shenzhen Topway. The stock trades about -0.17 of its potential returns per unit of risk. The Shenzhen Topway Video is currently generating about -0.13 of returns per unit of risk over similar time horizon. If you would invest 837.00 in Shenzhen Topway Video on October 28, 2024 and sell it today you would lose (62.00) from holding Shenzhen Topway Video or give up 7.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guizhou BroadcastingTV Info vs. Shenzhen Topway Video
Performance |
| Timeline |
| Guizhou BroadcastingTV |
| Shenzhen Topway Video |
Guizhou BroadcastingTV and Shenzhen Topway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guizhou BroadcastingTV and Shenzhen Topway
The main advantage of trading using opposite Guizhou BroadcastingTV and Shenzhen Topway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guizhou BroadcastingTV position performs unexpectedly, Shenzhen Topway 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 Shenzhen Topway will offset losses from the drop in Shenzhen Topway's long position.| Guizhou BroadcastingTV vs. SSAW Hotels Resorts | Guizhou BroadcastingTV vs. Healthcare Co | Guizhou BroadcastingTV vs. Andon Health Co | Guizhou BroadcastingTV vs. Huatian Hotel Group |
| Shenzhen Topway vs. Liaoning Dingjide Petrochemical | Shenzhen Topway vs. Shenzhen Noposion Agrochemicals | Shenzhen Topway vs. HeBei Jinniu Chemical | Shenzhen Topway vs. Tianjin Ruixin Technology |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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