Correlation Between Hengdian Entertainment and Thinkingdom Media
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By analyzing existing cross correlation between Hengdian Entertainment Co and Thinkingdom Media Group, you can compare the effects of market volatilities on Hengdian Entertainment and Thinkingdom 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 Thinkingdom Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hengdian Entertainment and Thinkingdom Media.
Diversification Opportunities for Hengdian Entertainment and Thinkingdom Media
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hengdian and Thinkingdom is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Hengdian Entertainment Co and Thinkingdom Media Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thinkingdom 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 Thinkingdom Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thinkingdom Media has no effect on the direction of Hengdian Entertainment i.e., Hengdian Entertainment and Thinkingdom Media go up and down completely randomly.
Pair Corralation between Hengdian Entertainment and Thinkingdom Media
Assuming the 90 days trading horizon Hengdian Entertainment Co is expected to under-perform the Thinkingdom Media. In addition to that, Hengdian Entertainment is 1.02 times more volatile than Thinkingdom Media Group. It trades about -0.03 of its total potential returns per unit of risk. Thinkingdom Media Group is currently generating about 0.09 per unit of volatility. If you would invest 1,891 in Thinkingdom Media Group on October 23, 2024 and sell it today you would earn a total of 92.00 from holding Thinkingdom Media Group or generate 4.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hengdian Entertainment Co vs. Thinkingdom Media Group
Performance |
| Timeline |
| Hengdian Entertainment |
| Thinkingdom Media |
Hengdian Entertainment and Thinkingdom Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hengdian Entertainment and Thinkingdom Media
The main advantage of trading using opposite Hengdian Entertainment and Thinkingdom Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hengdian Entertainment position performs unexpectedly, Thinkingdom 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 Thinkingdom Media will offset losses from the drop in Thinkingdom Media's long position.| Hengdian Entertainment vs. Industrial and Commercial | Hengdian Entertainment vs. Kweichow Moutai Co | Hengdian Entertainment vs. Agricultural Bank of | Hengdian Entertainment vs. China Mobile Limited |
| Thinkingdom Media vs. Cambricon Technologies Corp | Thinkingdom Media vs. SGSG Sciencetechnology Co | Thinkingdom Media vs. Loongson Technology Corp | Thinkingdom Media vs. Zhonghang Electronic Measuring |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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