Correlation Between Xiamen Goldenhome and Hunan TV
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By analyzing existing cross correlation between Xiamen Goldenhome Co and Hunan TV Broadcast, you can compare the effects of market volatilities on Xiamen Goldenhome and Hunan TV 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 Xiamen Goldenhome with a short position of Hunan TV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiamen Goldenhome and Hunan TV.
Diversification Opportunities for Xiamen Goldenhome and Hunan TV
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xiamen and Hunan is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Xiamen Goldenhome Co and Hunan TV Broadcast in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunan TV Broadcast and Xiamen Goldenhome 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 Xiamen Goldenhome Co are associated (or correlated) with Hunan TV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hunan TV Broadcast has no effect on the direction of Xiamen Goldenhome i.e., Xiamen Goldenhome and Hunan TV go up and down completely randomly.
Pair Corralation between Xiamen Goldenhome and Hunan TV
Assuming the 90 days trading horizon Xiamen Goldenhome Co is expected to under-perform the Hunan TV. But the stock apears to be less risky and, when comparing its historical volatility, Xiamen Goldenhome Co is 1.59 times less risky than Hunan TV. The stock trades about -0.13 of its potential returns per unit of risk. The Hunan TV Broadcast is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 707.00 in Hunan TV Broadcast on December 1, 2024 and sell it today you would earn a total of 12.00 from holding Hunan TV Broadcast or generate 1.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiamen Goldenhome Co vs. Hunan TV Broadcast
Performance |
| Timeline |
| Xiamen Goldenhome |
| Hunan TV Broadcast |
Xiamen Goldenhome and Hunan TV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiamen Goldenhome and Hunan TV
The main advantage of trading using opposite Xiamen Goldenhome and Hunan TV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiamen Goldenhome position performs unexpectedly, Hunan TV 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 Hunan TV will offset losses from the drop in Hunan TV's long position.| Xiamen Goldenhome vs. Queclink Wireless Solutions | Xiamen Goldenhome vs. Xinjiang Tianrun Dairy | Xiamen Goldenhome vs. New Hope Dairy | Xiamen Goldenhome vs. Jilin Jlu Communication |
| Hunan TV vs. Beijing Balance Medical | Hunan TV vs. Zhengping RoadBridge Constr | Hunan TV vs. Highbroad Advanced Material | Hunan TV vs. Longjian Road Bridge |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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