Correlation Between Heilongjiang Publishing and Hunan TV
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By analyzing existing cross correlation between Heilongjiang Publishing Media and Hunan TV Broadcast, you can compare the effects of market volatilities on Heilongjiang Publishing 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 Heilongjiang Publishing with a short position of Hunan TV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Heilongjiang Publishing and Hunan TV.
Diversification Opportunities for Heilongjiang Publishing and Hunan TV
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Heilongjiang and Hunan is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Heilongjiang Publishing Media 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 Heilongjiang Publishing 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 Heilongjiang Publishing Media 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 Heilongjiang Publishing i.e., Heilongjiang Publishing and Hunan TV go up and down completely randomly.
Pair Corralation between Heilongjiang Publishing and Hunan TV
Assuming the 90 days trading horizon Heilongjiang Publishing Media is expected to generate 1.16 times more return on investment than Hunan TV. However, Heilongjiang Publishing is 1.16 times more volatile than Hunan TV Broadcast. It trades about -0.13 of its potential returns per unit of risk. Hunan TV Broadcast is currently generating about -0.18 per unit of risk. If you would invest 1,689 in Heilongjiang Publishing Media on September 28, 2024 and sell it today you would lose (167.00) from holding Heilongjiang Publishing Media or give up 9.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Heilongjiang Publishing Media vs. Hunan TV Broadcast
Performance |
| Timeline |
| Heilongjiang Publishing |
| Hunan TV Broadcast |
Heilongjiang Publishing and Hunan TV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Heilongjiang Publishing and Hunan TV
The main advantage of trading using opposite Heilongjiang Publishing and Hunan TV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Heilongjiang Publishing 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.| Heilongjiang Publishing vs. Ningbo Bohui Chemical | Heilongjiang Publishing vs. Lotus Health Group | Heilongjiang Publishing vs. Meinian Onehealth Healthcare | Heilongjiang Publishing vs. Jilin Chemical Fibre |
| Hunan TV vs. Guocheng Mining Co | Hunan TV vs. Zhengzhou Coal Mining | Hunan TV vs. Dareway Software Co | Hunan TV vs. Shengda Mining Co |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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