Correlation Between Dazhong Transportation and Hunan TV
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By analyzing existing cross correlation between Dazhong Transportation Group and Hunan TV Broadcast, you can compare the effects of market volatilities on Dazhong Transportation 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 Dazhong Transportation with a short position of Hunan TV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dazhong Transportation and Hunan TV.
Diversification Opportunities for Dazhong Transportation and Hunan TV
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Dazhong and Hunan is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Dazhong Transportation Group 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 Dazhong Transportation 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 Dazhong Transportation Group 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 Dazhong Transportation i.e., Dazhong Transportation and Hunan TV go up and down completely randomly.
Pair Corralation between Dazhong Transportation and Hunan TV
Assuming the 90 days trading horizon Dazhong Transportation is expected to generate 11.49 times less return on investment than Hunan TV. But when comparing it to its historical volatility, Dazhong Transportation Group is 2.22 times less risky than Hunan TV. It trades about 0.01 of its potential returns per unit of risk. Hunan TV Broadcast is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 759.00 in Hunan TV Broadcast on August 29, 2024 and sell it today you would earn a total of 39.00 from holding Hunan TV Broadcast or generate 5.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dazhong Transportation Group vs. Hunan TV Broadcast
Performance |
| Timeline |
| Dazhong Transportation |
| Hunan TV Broadcast |
Dazhong Transportation and Hunan TV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dazhong Transportation and Hunan TV
The main advantage of trading using opposite Dazhong Transportation and Hunan TV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dazhong Transportation 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.| Dazhong Transportation vs. PetroChina Co Ltd | Dazhong Transportation vs. China State Construction | Dazhong Transportation vs. China Mobile Limited | Dazhong Transportation vs. Industrial and Commercial |
| Hunan TV vs. Postal Savings Bank | Hunan TV vs. Duzhe Publishing Media | Hunan TV vs. Metro Investment Development | Hunan TV vs. Jiangsu Yueda 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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