Correlation Between China Securities and Hunan TV
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By analyzing existing cross correlation between China Securities 800 and Hunan TV Broadcast, you can compare the effects of market volatilities on China Securities 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 China Securities with a short position of Hunan TV. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and Hunan TV.
Diversification Opportunities for China Securities and Hunan TV
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Hunan is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 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 China Securities 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 Securities 800 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 China Securities i.e., China Securities and Hunan TV go up and down completely randomly.
Pair Corralation between China Securities and Hunan TV
Assuming the 90 days trading horizon China Securities is expected to generate 2.08 times less return on investment than Hunan TV. But when comparing it to its historical volatility, China Securities 800 is 2.13 times less risky than Hunan TV. It trades about 0.13 of its potential returns per unit of risk. Hunan TV Broadcast is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 563.00 in Hunan TV Broadcast on September 25, 2024 and sell it today you would earn a total of 191.00 from holding Hunan TV Broadcast or generate 33.93% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 98.33% |
Values | Daily Returns |
China Securities 800 vs. Hunan TV Broadcast
Performance |
Timeline |
China Securities and Hunan TV Volatility Contrast
Predicted Return Density |
Returns |
China Securities 800
Pair trading matchups for China Securities
Hunan TV Broadcast
Pair trading matchups for Hunan TV
Pair Trading with China Securities and Hunan TV
The main advantage of trading using opposite China Securities and Hunan TV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities 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.China Securities vs. Liuzhou Chemical Industry | China Securities vs. Guangzhou Jointas Chemical | China Securities vs. Shenzhen Noposion Agrochemicals | China Securities vs. Liaoning Dingjide Petrochemical |
Hunan TV vs. Yili Chuanning Biotechnology | Hunan TV vs. China Sports Industry | Hunan TV vs. Jiangsu GDK Biotechnology | Hunan TV vs. Hainan Haiqi Transportation |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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