Correlation Between China Television and Galaxy Software
Can any of the company-specific risk be diversified away by investing in both China Television and Galaxy Software at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining China Television and Galaxy Software into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between China Television Co and Galaxy Software Services, you can compare the effects of market volatilities on China Television and Galaxy Software 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 China Television with a short position of Galaxy Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Television and Galaxy Software.
Diversification Opportunities for China Television and Galaxy Software
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and Galaxy is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding China Television Co and Galaxy Software Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Galaxy Software Services and China Television 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 China Television Co are associated (or correlated) with Galaxy Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Galaxy Software Services has no effect on the direction of China Television i.e., China Television and Galaxy Software go up and down completely randomly.
Pair Corralation between China Television and Galaxy Software
Assuming the 90 days trading horizon China Television is expected to generate 551.42 times less return on investment than Galaxy Software. But when comparing it to its historical volatility, China Television Co is 16.87 times less risky than Galaxy Software. It trades about 0.0 of its potential returns per unit of risk. Galaxy Software Services is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 10,752 in Galaxy Software Services on November 19, 2024 and sell it today you would earn a total of 3,798 from holding Galaxy Software Services or generate 35.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Television Co vs. Galaxy Software Services
Performance |
| Timeline |
| China Television |
| Galaxy Software Services |
China Television and Galaxy Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Television and Galaxy Software
The main advantage of trading using opposite China Television and Galaxy Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Television position performs unexpectedly, Galaxy Software 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 Galaxy Software will offset losses from the drop in Galaxy Software's long position.| China Television vs. Choice Development | China Television vs. Ton Yi Industrial | China Television vs. Taiwan Sakura Corp | China Television vs. Thye Ming Industrial |
| Galaxy Software vs. Gloria Material Technology | Galaxy Software vs. Hi Lai Foods Co | Galaxy Software vs. Lian Hwa Foods | Galaxy Software vs. FineMat Applied Materials |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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