Correlation Between Wasu Media and China Sports
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By analyzing existing cross correlation between Wasu Media Holding and China Sports Industry, you can compare the effects of market volatilities on Wasu Media and China Sports 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 Wasu Media with a short position of China Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wasu Media and China Sports.
Diversification Opportunities for Wasu Media and China Sports
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Wasu and China is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Wasu Media Holding and China Sports Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Sports Industry and Wasu Media 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 Wasu Media Holding are associated (or correlated) with China Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Sports Industry has no effect on the direction of Wasu Media i.e., Wasu Media and China Sports go up and down completely randomly.
Pair Corralation between Wasu Media and China Sports
Assuming the 90 days trading horizon Wasu Media is expected to generate 1.05 times less return on investment than China Sports. But when comparing it to its historical volatility, Wasu Media Holding is 1.02 times less risky than China Sports. It trades about 0.07 of its potential returns per unit of risk. China Sports Industry is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 670.00 in China Sports Industry on November 2, 2024 and sell it today you would earn a total of 110.00 from holding China Sports Industry or generate 16.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wasu Media Holding vs. China Sports Industry
Performance |
| Timeline |
| Wasu Media Holding |
| China Sports Industry |
Wasu Media and China Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wasu Media and China Sports
The main advantage of trading using opposite Wasu Media and China Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wasu Media position performs unexpectedly, China Sports 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 China Sports will offset losses from the drop in China Sports' long position.| Wasu Media vs. GuoChuang Software Co | Wasu Media vs. Xinhua Winshare Publishing | Wasu Media vs. Offcn Education Technology | Wasu Media vs. Qtone Education Group |
| China Sports vs. Duzhe Publishing Media | China Sports vs. Xinhua Winshare Publishing | China Sports vs. Shandong Sanyuan Biotechnology | China Sports vs. Beijing Kaiwen Education |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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