Correlation Between Heilongjiang Transport and Hunan TV
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By analyzing existing cross correlation between Heilongjiang Transport Development and Hunan TV Broadcast, you can compare the effects of market volatilities on Heilongjiang Transport and Hunan TV 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 Heilongjiang Transport with a short position of Hunan TV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Heilongjiang Transport and Hunan TV.
Diversification Opportunities for Heilongjiang Transport and Hunan TV
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Heilongjiang and Hunan is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Heilongjiang Transport Develop and Hunan TV Broadcast in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunan TV Broadcast and Heilongjiang Transport 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 Heilongjiang Transport Development are associated (or correlated) with Hunan TV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hunan TV Broadcast has no effect on the direction of Heilongjiang Transport i.e., Heilongjiang Transport and Hunan TV go up and down completely randomly.
Pair Corralation between Heilongjiang Transport and Hunan TV
Assuming the 90 days trading horizon Heilongjiang Transport is expected to generate 1.22 times less return on investment than Hunan TV. But when comparing it to its historical volatility, Heilongjiang Transport Development is 3.08 times less risky than Hunan TV. It trades about 0.16 of its potential returns per unit of risk. Hunan TV Broadcast is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 759.00 in Hunan TV Broadcast on August 29, 2024 and sell it today you would earn a total of 39.00 from holding Hunan TV Broadcast or generate 5.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Heilongjiang Transport Develop vs. Hunan TV Broadcast
Performance |
| Timeline |
| Heilongjiang Transport |
| Hunan TV Broadcast |
Heilongjiang Transport and Hunan TV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Heilongjiang Transport and Hunan TV
The main advantage of trading using opposite Heilongjiang Transport and Hunan TV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Heilongjiang Transport position performs unexpectedly, Hunan TV 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 Hunan TV will offset losses from the drop in Hunan TV's long position.| Heilongjiang Transport vs. PetroChina Co Ltd | Heilongjiang Transport vs. China State Construction | Heilongjiang Transport vs. China Mobile Limited | Heilongjiang Transport vs. Industrial and Commercial |
| Hunan TV vs. Postal Savings Bank | Hunan TV vs. Duzhe Publishing Media | Hunan TV vs. Metro Investment Development | Hunan TV vs. Jiangsu Yueda Investment |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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