Correlation Between Citic Offshore and Sportsoul
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By analyzing existing cross correlation between Citic Offshore Helicopter and Sportsoul Co Ltd, you can compare the effects of market volatilities on Citic Offshore and Sportsoul 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 Citic Offshore with a short position of Sportsoul. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citic Offshore and Sportsoul.
Diversification Opportunities for Citic Offshore and Sportsoul
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Citic and Sportsoul is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Citic Offshore Helicopter and Sportsoul Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sportsoul and Citic Offshore 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 Citic Offshore Helicopter are associated (or correlated) with Sportsoul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sportsoul has no effect on the direction of Citic Offshore i.e., Citic Offshore and Sportsoul go up and down completely randomly.
Pair Corralation between Citic Offshore and Sportsoul
Assuming the 90 days trading horizon Citic Offshore is expected to generate 1.59 times less return on investment than Sportsoul. But when comparing it to its historical volatility, Citic Offshore Helicopter is 1.1 times less risky than Sportsoul. It trades about 0.13 of its potential returns per unit of risk. Sportsoul Co Ltd is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 1,073 in Sportsoul Co Ltd on November 6, 2024 and sell it today you would earn a total of 82.00 from holding Sportsoul Co Ltd or generate 7.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citic Offshore Helicopter vs. Sportsoul Co Ltd
Performance |
| Timeline |
| Citic Offshore Helicopter |
| Sportsoul |
Citic Offshore and Sportsoul Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citic Offshore and Sportsoul
The main advantage of trading using opposite Citic Offshore and Sportsoul positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citic Offshore position performs unexpectedly, Sportsoul 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 Sportsoul will offset losses from the drop in Sportsoul's long position.| Citic Offshore vs. Shandong Kuntai New | Citic Offshore vs. Malion New Materials | Citic Offshore vs. Shandong Sanyuan Biotechnology | Citic Offshore vs. Easyhome New Retail |
| Sportsoul vs. Kidswant Children Products | Sportsoul vs. Everjoy Health Group | Sportsoul vs. De Rucci Healthy | Sportsoul vs. Anhui Huaren Health |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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