Correlation Between Hunan TV and Ningbo Fangzheng
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By analyzing existing cross correlation between Hunan TV Broadcast and Ningbo Fangzheng Automobile, you can compare the effects of market volatilities on Hunan TV and Ningbo Fangzheng 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 Hunan TV with a short position of Ningbo Fangzheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunan TV and Ningbo Fangzheng.
Diversification Opportunities for Hunan TV and Ningbo Fangzheng
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Hunan and Ningbo is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Hunan TV Broadcast and Ningbo Fangzheng Automobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Fangzheng Aut and Hunan TV 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 Hunan TV Broadcast are associated (or correlated) with Ningbo Fangzheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Fangzheng Aut has no effect on the direction of Hunan TV i.e., Hunan TV and Ningbo Fangzheng go up and down completely randomly.
Pair Corralation between Hunan TV and Ningbo Fangzheng
Assuming the 90 days trading horizon Hunan TV Broadcast is expected to generate 1.06 times more return on investment than Ningbo Fangzheng. However, Hunan TV is 1.06 times more volatile than Ningbo Fangzheng Automobile. It trades about 0.03 of its potential returns per unit of risk. Ningbo Fangzheng Automobile is currently generating about -0.02 per unit of risk. If you would invest 529.00 in Hunan TV Broadcast on October 10, 2024 and sell it today you would earn a total of 132.00 from holding Hunan TV Broadcast or generate 24.95% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Hunan TV Broadcast vs. Ningbo Fangzheng Automobile
Performance |
Timeline |
Hunan TV Broadcast |
Ningbo Fangzheng Aut |
Hunan TV and Ningbo Fangzheng Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hunan TV and Ningbo Fangzheng
The main advantage of trading using opposite Hunan TV and Ningbo Fangzheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunan TV position performs unexpectedly, Ningbo Fangzheng 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 Ningbo Fangzheng will offset losses from the drop in Ningbo Fangzheng's long position.Hunan TV vs. Beijing YanDong MicroElectronic | Hunan TV vs. Fujian Boss Software | Hunan TV vs. China National Software | Hunan TV vs. Anhui Shiny Electronic |
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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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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