Correlation Between Hengdian Entertainment and Autek China
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By analyzing existing cross correlation between Hengdian Entertainment Co and Autek China, you can compare the effects of market volatilities on Hengdian Entertainment and Autek China 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 Hengdian Entertainment with a short position of Autek China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hengdian Entertainment and Autek China.
Diversification Opportunities for Hengdian Entertainment and Autek China
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Hengdian and Autek is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Hengdian Entertainment Co and Autek China in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Autek China and Hengdian Entertainment 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 Hengdian Entertainment Co are associated (or correlated) with Autek China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Autek China has no effect on the direction of Hengdian Entertainment i.e., Hengdian Entertainment and Autek China go up and down completely randomly.
Pair Corralation between Hengdian Entertainment and Autek China
Assuming the 90 days trading horizon Hengdian Entertainment Co is expected to generate 1.04 times more return on investment than Autek China. However, Hengdian Entertainment is 1.04 times more volatile than Autek China. It trades about -0.04 of its potential returns per unit of risk. Autek China is currently generating about -0.29 per unit of risk. If you would invest 1,532 in Hengdian Entertainment Co on October 25, 2024 and sell it today you would lose (54.00) from holding Hengdian Entertainment Co or give up 3.52% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Hengdian Entertainment Co vs. Autek China
Performance |
Timeline |
Hengdian Entertainment |
Autek China |
Hengdian Entertainment and Autek China Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hengdian Entertainment and Autek China
The main advantage of trading using opposite Hengdian Entertainment and Autek China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hengdian Entertainment position performs unexpectedly, Autek China 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 Autek China will offset losses from the drop in Autek China's long position.Hengdian Entertainment vs. Industrial and Commercial | Hengdian Entertainment vs. Agricultural Bank of | Hengdian Entertainment vs. China Construction Bank | Hengdian Entertainment vs. Bank of China |
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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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