Correlation Between Southern PublishingMedia and Hygon Information
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By analyzing existing cross correlation between Southern PublishingMedia Co and Hygon Information Technology, you can compare the effects of market volatilities on Southern PublishingMedia and Hygon Information 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 Southern PublishingMedia with a short position of Hygon Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Southern PublishingMedia and Hygon Information.
Diversification Opportunities for Southern PublishingMedia and Hygon Information
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Southern and Hygon is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Southern PublishingMedia Co and Hygon Information Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hygon Information and Southern PublishingMedia 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 Southern PublishingMedia Co are associated (or correlated) with Hygon Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hygon Information has no effect on the direction of Southern PublishingMedia i.e., Southern PublishingMedia and Hygon Information go up and down completely randomly.
Pair Corralation between Southern PublishingMedia and Hygon Information
Assuming the 90 days trading horizon Southern PublishingMedia is expected to generate 1.67 times less return on investment than Hygon Information. But when comparing it to its historical volatility, Southern PublishingMedia Co is 1.0 times less risky than Hygon Information. It trades about 0.05 of its potential returns per unit of risk. Hygon Information Technology is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 4,411 in Hygon Information Technology on October 16, 2024 and sell it today you would earn a total of 9,929 from holding Hygon Information Technology or generate 225.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Southern PublishingMedia Co vs. Hygon Information Technology
Performance |
| Timeline |
| Southern PublishingMedia |
| Hygon Information |
Southern PublishingMedia and Hygon Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Southern PublishingMedia and Hygon Information
The main advantage of trading using opposite Southern PublishingMedia and Hygon Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Southern PublishingMedia position performs unexpectedly, Hygon Information 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 Hygon Information will offset losses from the drop in Hygon Information's long position.The idea behind Southern PublishingMedia Co and Hygon Information Technology pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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