Correlation Between Hunan TV and Jiangsu Pacific
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By analyzing existing cross correlation between Hunan TV Broadcast and Jiangsu Pacific Quartz, you can compare the effects of market volatilities on Hunan TV and Jiangsu Pacific 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 Jiangsu Pacific. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunan TV and Jiangsu Pacific.
Diversification Opportunities for Hunan TV and Jiangsu Pacific
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Hunan and Jiangsu is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Hunan TV Broadcast and Jiangsu Pacific Quartz in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Pacific Quartz 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 Jiangsu Pacific. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Pacific Quartz has no effect on the direction of Hunan TV i.e., Hunan TV and Jiangsu Pacific go up and down completely randomly.
Pair Corralation between Hunan TV and Jiangsu Pacific
Assuming the 90 days trading horizon Hunan TV Broadcast is expected to generate 0.95 times more return on investment than Jiangsu Pacific. However, Hunan TV Broadcast is 1.05 times less risky than Jiangsu Pacific. It trades about 0.03 of its potential returns per unit of risk. Jiangsu Pacific Quartz is currently generating about -0.07 per unit of risk. If you would invest 549.00 in Hunan TV Broadcast on October 5, 2024 and sell it today you would earn a total of 142.00 from holding Hunan TV Broadcast or generate 25.87% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Hunan TV Broadcast vs. Jiangsu Pacific Quartz
Performance |
Timeline |
Hunan TV Broadcast |
Jiangsu Pacific Quartz |
Hunan TV and Jiangsu Pacific Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hunan TV and Jiangsu Pacific
The main advantage of trading using opposite Hunan TV and Jiangsu Pacific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunan TV position performs unexpectedly, Jiangsu Pacific 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 Jiangsu Pacific will offset losses from the drop in Jiangsu Pacific's long position.Hunan TV vs. Kweichow Moutai Co | Hunan TV vs. Beijing Roborock Technology | Hunan TV vs. G bits Network Technology | Hunan TV vs. China Mobile Limited |
Jiangsu Pacific vs. Gansu Jiu Steel | Jiangsu Pacific vs. Changzhou Almaden Co | Jiangsu Pacific vs. Aba Chemicals Corp | Jiangsu Pacific vs. Hwabao WP CSI |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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