Correlation Between Hengdian Entertainment and Jiangsu Yike
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By analyzing existing cross correlation between Hengdian Entertainment Co and Jiangsu Yike Food, you can compare the effects of market volatilities on Hengdian Entertainment and Jiangsu Yike 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 Jiangsu Yike. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hengdian Entertainment and Jiangsu Yike.
Diversification Opportunities for Hengdian Entertainment and Jiangsu Yike
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hengdian and Jiangsu is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Hengdian Entertainment Co and Jiangsu Yike Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Yike Food 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 Jiangsu Yike. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Yike Food has no effect on the direction of Hengdian Entertainment i.e., Hengdian Entertainment and Jiangsu Yike go up and down completely randomly.
Pair Corralation between Hengdian Entertainment and Jiangsu Yike
Assuming the 90 days trading horizon Hengdian Entertainment Co is expected to generate 1.16 times more return on investment than Jiangsu Yike. However, Hengdian Entertainment is 1.16 times more volatile than Jiangsu Yike Food. It trades about -0.03 of its potential returns per unit of risk. Jiangsu Yike Food is currently generating about -0.25 per unit of risk. If you would invest 1,483 in Hengdian Entertainment Co on October 24, 2024 and sell it today you would lose (49.00) from holding Hengdian Entertainment Co or give up 3.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hengdian Entertainment Co vs. Jiangsu Yike Food
Performance |
| Timeline |
| Hengdian Entertainment |
| Jiangsu Yike Food |
Hengdian Entertainment and Jiangsu Yike Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hengdian Entertainment and Jiangsu Yike
The main advantage of trading using opposite Hengdian Entertainment and Jiangsu Yike positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hengdian Entertainment position performs unexpectedly, Jiangsu Yike 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 Jiangsu Yike will offset losses from the drop in Jiangsu Yike's long position.| Hengdian Entertainment vs. Miracll Chemicals Co | Hengdian Entertainment vs. Postal Savings Bank | Hengdian Entertainment vs. Liaoning Dingjide Petrochemical | Hengdian Entertainment vs. Peoples Insurance of |
| Jiangsu Yike vs. Jiangsu Yueda Investment | Jiangsu Yike vs. China Publishing Media | Jiangsu Yike vs. Heilongjiang Publishing Media | Jiangsu Yike vs. Hengdian Entertainment Co |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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