Correlation Between Hunan TV and Cheer Holding

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Can any of the company-specific risk be diversified away by investing in both Hunan TV and Cheer Holding at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Hunan TV and Cheer Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hunan TV Broadcast and Cheer Holding, you can compare the effects of market volatilities on Hunan TV and Cheer Holding 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 Cheer Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunan TV and Cheer Holding.

Diversification Opportunities for Hunan TV and Cheer Holding

-0.73
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Hunan and Cheer is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Hunan TV Broadcast and Cheer Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cheer Holding 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 Cheer Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cheer Holding has no effect on the direction of Hunan TV i.e., Hunan TV and Cheer Holding go up and down completely randomly.

Pair Corralation between Hunan TV and Cheer Holding

Assuming the 90 days trading horizon Hunan TV Broadcast is expected to generate 0.13 times more return on investment than Cheer Holding. However, Hunan TV Broadcast is 7.49 times less risky than Cheer Holding. It trades about -0.09 of its potential returns per unit of risk. Cheer Holding is currently generating about -0.29 per unit of risk. If you would invest  895.00  in Hunan TV Broadcast on August 30, 2025 and sell it today you would lose (34.00) from holding Hunan TV Broadcast or give up 3.8% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy95.65%
ValuesDaily Returns

Hunan TV Broadcast  vs.  Cheer Holding

 Performance 
       Timeline  
Hunan TV Broadcast 

Risk-Adjusted Performance

Mild

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Hunan TV Broadcast are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Hunan TV may actually be approaching a critical reversion point that can send shares even higher in December 2025.
Cheer Holding 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Cheer Holding has generated negative risk-adjusted returns adding no value to investors with long positions. Even with unfluctuating performance in the last few months, the Stock's technical indicators remain relatively invariable which may send shares a bit higher in December 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Hunan TV and Cheer Holding Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Hunan TV and Cheer Holding

The main advantage of trading using opposite Hunan TV and Cheer Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunan TV position performs unexpectedly, Cheer Holding 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 Cheer Holding will offset losses from the drop in Cheer Holding's long position.
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The idea behind Hunan TV Broadcast and Cheer Holding pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.

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