Correlation Between Hangzhou Arcvideo and Hunan TV
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By analyzing existing cross correlation between Hangzhou Arcvideo Technology and Hunan TV Broadcast, you can compare the effects of market volatilities on Hangzhou Arcvideo 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 Hangzhou Arcvideo with a short position of Hunan TV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hangzhou Arcvideo and Hunan TV.
Diversification Opportunities for Hangzhou Arcvideo and Hunan TV
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hangzhou and Hunan is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Hangzhou Arcvideo Technology 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 Hangzhou Arcvideo 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 Hangzhou Arcvideo Technology 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 Hangzhou Arcvideo i.e., Hangzhou Arcvideo and Hunan TV go up and down completely randomly.
Pair Corralation between Hangzhou Arcvideo and Hunan TV
Assuming the 90 days trading horizon Hangzhou Arcvideo Technology is expected to generate 1.09 times more return on investment than Hunan TV. However, Hangzhou Arcvideo is 1.09 times more volatile than Hunan TV Broadcast. It trades about 0.26 of its potential returns per unit of risk. Hunan TV Broadcast is currently generating about 0.26 per unit of risk. If you would invest 2,419 in Hangzhou Arcvideo Technology on November 5, 2024 and sell it today you would earn a total of 316.00 from holding Hangzhou Arcvideo Technology or generate 13.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hangzhou Arcvideo Technology vs. Hunan TV Broadcast
Performance |
| Timeline |
| Hangzhou Arcvideo |
| Hunan TV Broadcast |
Hangzhou Arcvideo and Hunan TV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hangzhou Arcvideo and Hunan TV
The main advantage of trading using opposite Hangzhou Arcvideo and Hunan TV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hangzhou Arcvideo 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.| Hangzhou Arcvideo vs. Shenzhen Topway Video | Hangzhou Arcvideo vs. Jiugui Liquor Co | Hangzhou Arcvideo vs. Vats Liquor Chain | Hangzhou Arcvideo vs. Konfoong Materials International |
| Hunan TV vs. Tieling Newcity Investment | Hunan TV vs. China Mobile Limited | Hunan TV vs. Shaanxi Energy Investment | Hunan TV vs. Xiamen Insight Investment |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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