Correlation Between Hengdian Entertainment and Crown Advanced
Specify exactly 2 symbols:
By analyzing existing cross correlation between Hengdian Entertainment Co and Crown Advanced Material, you can compare the effects of market volatilities on Hengdian Entertainment and Crown Advanced 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 Crown Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hengdian Entertainment and Crown Advanced.
Diversification Opportunities for Hengdian Entertainment and Crown Advanced
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hengdian and Crown is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Hengdian Entertainment Co and Crown Advanced Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crown Advanced Material 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 Crown Advanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crown Advanced Material has no effect on the direction of Hengdian Entertainment i.e., Hengdian Entertainment and Crown Advanced go up and down completely randomly.
Pair Corralation between Hengdian Entertainment and Crown Advanced
Assuming the 90 days trading horizon Hengdian Entertainment Co is expected to generate 1.19 times more return on investment than Crown Advanced. However, Hengdian Entertainment is 1.19 times more volatile than Crown Advanced Material. It trades about 0.19 of its potential returns per unit of risk. Crown Advanced Material is currently generating about -0.26 per unit of risk. If you would invest 1,285 in Hengdian Entertainment Co on August 28, 2024 and sell it today you would earn a total of 210.00 from holding Hengdian Entertainment Co or generate 16.34% 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. Crown Advanced Material
Performance |
| Timeline |
| Hengdian Entertainment |
| Crown Advanced Material |
Hengdian Entertainment and Crown Advanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hengdian Entertainment and Crown Advanced
The main advantage of trading using opposite Hengdian Entertainment and Crown Advanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hengdian Entertainment position performs unexpectedly, Crown Advanced 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 Crown Advanced will offset losses from the drop in Crown Advanced's long position.| Hengdian Entertainment vs. Agricultural Bank of | Hengdian Entertainment vs. Industrial and Commercial | Hengdian Entertainment vs. Bank of China | Hengdian Entertainment vs. PetroChina Co Ltd |
| Crown Advanced vs. Zijin Mining Group | Crown Advanced vs. Wanhua Chemical Group | Crown Advanced vs. Baoshan Iron Steel | Crown Advanced vs. Shandong Gold Mining |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |