Correlation Between Zhongtong Guomai and Huayi Brothers
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By analyzing existing cross correlation between Zhongtong Guomai Communication and Huayi Brothers Media, you can compare the effects of market volatilities on Zhongtong Guomai and Huayi Brothers 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 Zhongtong Guomai with a short position of Huayi Brothers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongtong Guomai and Huayi Brothers.
Diversification Opportunities for Zhongtong Guomai and Huayi Brothers
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhongtong and Huayi is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Zhongtong Guomai Communication and Huayi Brothers Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huayi Brothers Media and Zhongtong Guomai 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 Zhongtong Guomai Communication are associated (or correlated) with Huayi Brothers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huayi Brothers Media has no effect on the direction of Zhongtong Guomai i.e., Zhongtong Guomai and Huayi Brothers go up and down completely randomly.
Pair Corralation between Zhongtong Guomai and Huayi Brothers
Assuming the 90 days trading horizon Zhongtong Guomai Communication is expected to under-perform the Huayi Brothers. But the stock apears to be less risky and, when comparing its historical volatility, Zhongtong Guomai Communication is 1.14 times less risky than Huayi Brothers. The stock trades about -0.01 of its potential returns per unit of risk. The Huayi Brothers Media is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 271.00 in Huayi Brothers Media on October 13, 2024 and sell it today you would lose (37.00) from holding Huayi Brothers Media or give up 13.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongtong Guomai Communication vs. Huayi Brothers Media
Performance |
| Timeline |
| Zhongtong Guomai Com |
| Huayi Brothers Media |
Zhongtong Guomai and Huayi Brothers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongtong Guomai and Huayi Brothers
The main advantage of trading using opposite Zhongtong Guomai and Huayi Brothers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongtong Guomai position performs unexpectedly, Huayi Brothers 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 Huayi Brothers will offset losses from the drop in Huayi Brothers' long position.| Zhongtong Guomai vs. Zhejiang Publishing Media | Zhongtong Guomai vs. COL Digital Publishing | Zhongtong Guomai vs. Xinhua Winshare Publishing | Zhongtong Guomai vs. Guangzhou KingTeller Technology |
| Huayi Brothers vs. Chengtun Mining Group | Huayi Brothers vs. Longxing Chemical Stock | Huayi Brothers vs. Guizhou Chanhen Chemical | Huayi Brothers vs. Xiangtan Electrochemical Scientific |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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