Correlation Between Thinkingdom Media and Hengdian Entertainment
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By analyzing existing cross correlation between Thinkingdom Media Group and Hengdian Entertainment Co, you can compare the effects of market volatilities on Thinkingdom Media and Hengdian Entertainment 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 Thinkingdom Media with a short position of Hengdian Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thinkingdom Media and Hengdian Entertainment.
Diversification Opportunities for Thinkingdom Media and Hengdian Entertainment
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Thinkingdom and Hengdian is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Thinkingdom Media Group and Hengdian Entertainment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hengdian Entertainment and Thinkingdom Media 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 Thinkingdom Media Group are associated (or correlated) with Hengdian Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hengdian Entertainment has no effect on the direction of Thinkingdom Media i.e., Thinkingdom Media and Hengdian Entertainment go up and down completely randomly.
Pair Corralation between Thinkingdom Media and Hengdian Entertainment
Assuming the 90 days trading horizon Thinkingdom Media Group is expected to generate 0.99 times more return on investment than Hengdian Entertainment. However, Thinkingdom Media Group is 1.01 times less risky than Hengdian Entertainment. It trades about 0.08 of its potential returns per unit of risk. Hengdian Entertainment Co is currently generating about 0.03 per unit of risk. If you would invest 1,291 in Thinkingdom Media Group on November 3, 2024 and sell it today you would earn a total of 689.00 from holding Thinkingdom Media Group or generate 53.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thinkingdom Media Group vs. Hengdian Entertainment Co
Performance |
| Timeline |
| Thinkingdom Media |
| Hengdian Entertainment |
Thinkingdom Media and Hengdian Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thinkingdom Media and Hengdian Entertainment
The main advantage of trading using opposite Thinkingdom Media and Hengdian Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thinkingdom Media position performs unexpectedly, Hengdian Entertainment 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 Hengdian Entertainment will offset losses from the drop in Hengdian Entertainment's long position.| Thinkingdom Media vs. Shenzhen Shenbao Industrial | Thinkingdom Media vs. Guangdong Sunwill Precising | Thinkingdom Media vs. Guangzhou Zhujiang Brewery | Thinkingdom Media vs. Ningbo Tip Rubber |
| Hengdian Entertainment vs. China World Trade | Hengdian Entertainment vs. Shandong Longquan Pipeline | Hengdian Entertainment vs. Linewell Software Co | Hengdian Entertainment vs. Guangdong Jingyi Metal |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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