Correlation Between Hygon Information and Shaanxi Broadcast
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By analyzing existing cross correlation between Hygon Information Technology and Shaanxi Broadcast TV, you can compare the effects of market volatilities on Hygon Information and Shaanxi Broadcast 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 Hygon Information with a short position of Shaanxi Broadcast. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hygon Information and Shaanxi Broadcast.
Diversification Opportunities for Hygon Information and Shaanxi Broadcast
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hygon and Shaanxi is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Hygon Information Technology and Shaanxi Broadcast TV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shaanxi Broadcast and Hygon Information 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 Hygon Information Technology are associated (or correlated) with Shaanxi Broadcast. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shaanxi Broadcast has no effect on the direction of Hygon Information i.e., Hygon Information and Shaanxi Broadcast go up and down completely randomly.
Pair Corralation between Hygon Information and Shaanxi Broadcast
Assuming the 90 days trading horizon Hygon Information Technology is expected to generate 1.34 times more return on investment than Shaanxi Broadcast. However, Hygon Information is 1.34 times more volatile than Shaanxi Broadcast TV. It trades about 0.07 of its potential returns per unit of risk. Shaanxi Broadcast TV is currently generating about -0.05 per unit of risk. If you would invest 4,956 in Hygon Information Technology on October 29, 2024 and sell it today you would earn a total of 8,144 from holding Hygon Information Technology or generate 164.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hygon Information Technology vs. Shaanxi Broadcast TV
Performance |
| Timeline |
| Hygon Information |
| Shaanxi Broadcast |
Hygon Information and Shaanxi Broadcast Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hygon Information and Shaanxi Broadcast
The main advantage of trading using opposite Hygon Information and Shaanxi Broadcast positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hygon Information position performs unexpectedly, Shaanxi Broadcast 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 Shaanxi Broadcast will offset losses from the drop in Shaanxi Broadcast's long position.| Hygon Information vs. Sharetronic Data Technology | Hygon Information vs. Sublime China Information | Hygon Information vs. Jinxiandai Information Industry | Hygon Information vs. Wasu Media Holding |
| Shaanxi Broadcast vs. Maccura Biotechnology Co | Shaanxi Broadcast vs. Chengdu Xingrong Investment | Shaanxi Broadcast vs. Xiandai Investment Co | Shaanxi Broadcast vs. Tieling Newcity 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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