Correlation Between Hunan TV and Jiangxi JDL
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By analyzing existing cross correlation between Hunan TV Broadcast and Jiangxi JDL Environmental, you can compare the effects of market volatilities on Hunan TV and Jiangxi JDL 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 Jiangxi JDL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunan TV and Jiangxi JDL.
Diversification Opportunities for Hunan TV and Jiangxi JDL
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hunan and Jiangxi is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Hunan TV Broadcast and Jiangxi JDL Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi JDL Environmental 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 Jiangxi JDL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangxi JDL Environmental has no effect on the direction of Hunan TV i.e., Hunan TV and Jiangxi JDL go up and down completely randomly.
Pair Corralation between Hunan TV and Jiangxi JDL
Assuming the 90 days trading horizon Hunan TV Broadcast is expected to generate 1.7 times more return on investment than Jiangxi JDL. However, Hunan TV is 1.7 times more volatile than Jiangxi JDL Environmental. It trades about 0.12 of its potential returns per unit of risk. Jiangxi JDL Environmental is currently generating about 0.09 per unit of risk. If you would invest 573.00 in Hunan TV Broadcast on September 26, 2024 and sell it today you would earn a total of 182.00 from holding Hunan TV Broadcast or generate 31.76% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Hunan TV Broadcast vs. Jiangxi JDL Environmental
Performance |
Timeline |
Hunan TV Broadcast |
Jiangxi JDL Environmental |
Hunan TV and Jiangxi JDL Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hunan TV and Jiangxi JDL
The main advantage of trading using opposite Hunan TV and Jiangxi JDL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunan TV position performs unexpectedly, Jiangxi JDL 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 Jiangxi JDL will offset losses from the drop in Jiangxi JDL's long position.Hunan TV vs. Jiangxi JDL Environmental | Hunan TV vs. Andon Health Co | Hunan TV vs. De Rucci Healthy | Hunan TV vs. Hangzhou Guotai Environmental |
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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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