Correlation Between Hengdian Entertainment and China Enterprise
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By analyzing existing cross correlation between Hengdian Entertainment Co and China Enterprise Co, you can compare the effects of market volatilities on Hengdian Entertainment and China Enterprise 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 China Enterprise. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hengdian Entertainment and China Enterprise.
Diversification Opportunities for Hengdian Entertainment and China Enterprise
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hengdian and China is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Hengdian Entertainment Co and China Enterprise Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Enterprise 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 China Enterprise. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Enterprise has no effect on the direction of Hengdian Entertainment i.e., Hengdian Entertainment and China Enterprise go up and down completely randomly.
Pair Corralation between Hengdian Entertainment and China Enterprise
Assuming the 90 days trading horizon Hengdian Entertainment Co is expected to under-perform the China Enterprise. But the stock apears to be less risky and, when comparing its historical volatility, Hengdian Entertainment Co is 1.01 times less risky than China Enterprise. The stock trades about -0.01 of its potential returns per unit of risk. The China Enterprise Co is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 306.00 in China Enterprise Co on October 30, 2024 and sell it today you would lose (38.00) from holding China Enterprise Co or give up 12.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.61% |
| Values | Daily Returns |
Hengdian Entertainment Co vs. China Enterprise Co
Performance |
| Timeline |
| Hengdian Entertainment |
| China Enterprise |
Hengdian Entertainment and China Enterprise Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hengdian Entertainment and China Enterprise
The main advantage of trading using opposite Hengdian Entertainment and China Enterprise positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hengdian Entertainment position performs unexpectedly, China Enterprise 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 China Enterprise will offset losses from the drop in China Enterprise's long position.| Hengdian Entertainment vs. GRG Banking Equipment | Hengdian Entertainment vs. Tongling Nonferrous Metals | Hengdian Entertainment vs. Industrial Bank Co | Hengdian Entertainment vs. Panda Financial Holding |
| China Enterprise vs. Shenzhen Zqgame | China Enterprise vs. Henan Shuanghui Investment | China Enterprise vs. Cansino Biologics | China Enterprise vs. Citic Offshore Helicopter |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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