Correlation Between Shaanxi Broadcast and Tonghua Grape
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By analyzing existing cross correlation between Shaanxi Broadcast TV and Tonghua Grape Wine, you can compare the effects of market volatilities on Shaanxi Broadcast and Tonghua Grape 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 Shaanxi Broadcast with a short position of Tonghua Grape. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shaanxi Broadcast and Tonghua Grape.
Diversification Opportunities for Shaanxi Broadcast and Tonghua Grape
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shaanxi and Tonghua is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Shaanxi Broadcast TV and Tonghua Grape Wine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tonghua Grape Wine and Shaanxi Broadcast 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 Shaanxi Broadcast TV are associated (or correlated) with Tonghua Grape. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tonghua Grape Wine has no effect on the direction of Shaanxi Broadcast i.e., Shaanxi Broadcast and Tonghua Grape go up and down completely randomly.
Pair Corralation between Shaanxi Broadcast and Tonghua Grape
Assuming the 90 days trading horizon Shaanxi Broadcast TV is expected to generate 1.09 times more return on investment than Tonghua Grape. However, Shaanxi Broadcast is 1.09 times more volatile than Tonghua Grape Wine. It trades about 0.02 of its potential returns per unit of risk. Tonghua Grape Wine is currently generating about -0.01 per unit of risk. If you would invest 248.00 in Shaanxi Broadcast TV on October 25, 2024 and sell it today you would earn a total of 1.00 from holding Shaanxi Broadcast TV or generate 0.4% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Shaanxi Broadcast TV vs. Tonghua Grape Wine
Performance |
Timeline |
Shaanxi Broadcast |
Tonghua Grape Wine |
Shaanxi Broadcast and Tonghua Grape Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shaanxi Broadcast and Tonghua Grape
The main advantage of trading using opposite Shaanxi Broadcast and Tonghua Grape positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shaanxi Broadcast position performs unexpectedly, Tonghua Grape 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 Tonghua Grape will offset losses from the drop in Tonghua Grape's long position.Shaanxi Broadcast vs. Industrial and Commercial | Shaanxi Broadcast vs. Agricultural Bank of | Shaanxi Broadcast vs. China Construction Bank | Shaanxi Broadcast vs. Bank of China |
Tonghua Grape vs. Agricultural Bank of | Tonghua Grape vs. Postal Savings Bank | Tonghua Grape vs. Bank of Communications | Tonghua Grape vs. China Merchants Bank |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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