Correlation Between Hengdian Entertainment and JiShi Media
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By analyzing existing cross correlation between Hengdian Entertainment Co and JiShi Media Co, you can compare the effects of market volatilities on Hengdian Entertainment and JiShi Media 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 JiShi Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hengdian Entertainment and JiShi Media.
Diversification Opportunities for Hengdian Entertainment and JiShi Media
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hengdian and JiShi is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Hengdian Entertainment Co and JiShi Media Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JiShi Media 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 JiShi Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JiShi Media has no effect on the direction of Hengdian Entertainment i.e., Hengdian Entertainment and JiShi Media go up and down completely randomly.
Pair Corralation between Hengdian Entertainment and JiShi Media
Assuming the 90 days trading horizon Hengdian Entertainment Co is expected to generate 0.82 times more return on investment than JiShi Media. However, Hengdian Entertainment Co is 1.22 times less risky than JiShi Media. It trades about 0.18 of its potential returns per unit of risk. JiShi Media Co is currently generating about 0.04 per unit of risk. If you would invest 1,178 in Hengdian Entertainment Co on August 25, 2024 and sell it today you would earn a total of 153.00 from holding Hengdian Entertainment Co or generate 12.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hengdian Entertainment Co vs. JiShi Media Co
Performance |
| Timeline |
| Hengdian Entertainment |
| JiShi Media |
Hengdian Entertainment and JiShi Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hengdian Entertainment and JiShi Media
The main advantage of trading using opposite Hengdian Entertainment and JiShi Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hengdian Entertainment position performs unexpectedly, JiShi Media 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 JiShi Media will offset losses from the drop in JiShi Media'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 |
| JiShi Media vs. Industrial and Commercial | JiShi Media vs. Agricultural Bank of | JiShi Media vs. China Construction Bank | JiShi Media vs. Bank of China |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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