Correlation Between New Trend and Shaanxi Broadcast
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By analyzing existing cross correlation between New Trend International and Shaanxi Broadcast TV, you can compare the effects of market volatilities on New Trend and Shaanxi Broadcast 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 New Trend with a short position of Shaanxi Broadcast. Check out your portfolio center. Please also check ongoing floating volatility patterns of New Trend and Shaanxi Broadcast.
Diversification Opportunities for New Trend and Shaanxi Broadcast
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between New and Shaanxi is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding New Trend International and Shaanxi Broadcast TV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shaanxi Broadcast and New Trend 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 New Trend International are associated (or correlated) with Shaanxi Broadcast. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shaanxi Broadcast has no effect on the direction of New Trend i.e., New Trend and Shaanxi Broadcast go up and down completely randomly.
Pair Corralation between New Trend and Shaanxi Broadcast
Assuming the 90 days trading horizon New Trend is expected to generate 1.06 times less return on investment than Shaanxi Broadcast. In addition to that, New Trend is 1.83 times more volatile than Shaanxi Broadcast TV. It trades about 0.11 of its total potential returns per unit of risk. Shaanxi Broadcast TV is currently generating about 0.21 per unit of volatility. If you would invest 208.00 in Shaanxi Broadcast TV on September 19, 2024 and sell it today you would earn a total of 81.00 from holding Shaanxi Broadcast TV or generate 38.94% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
New Trend International vs. Shaanxi Broadcast TV
Performance |
Timeline |
New Trend International |
Shaanxi Broadcast |
New Trend and Shaanxi Broadcast Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with New Trend and Shaanxi Broadcast
The main advantage of trading using opposite New Trend and Shaanxi Broadcast positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New Trend position performs unexpectedly, Shaanxi Broadcast 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 Shaanxi Broadcast will offset losses from the drop in Shaanxi Broadcast's long position.New Trend vs. Shaanxi Broadcast TV | New Trend vs. Metro Investment Development | New Trend vs. Henan Shuanghui Investment | New Trend vs. Zhongrun Resources Investment |
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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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