Correlation Between CITIC Guoan and Sportsoul
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By analyzing existing cross correlation between CITIC Guoan Information and Sportsoul Co Ltd, you can compare the effects of market volatilities on CITIC Guoan 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 Guoan with a short position of Sportsoul. Check out your portfolio center. Please also check ongoing floating volatility patterns of CITIC Guoan and Sportsoul.
Diversification Opportunities for CITIC Guoan and Sportsoul
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CITIC and Sportsoul is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding CITIC Guoan Information and Sportsoul Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sportsoul and CITIC Guoan 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 Guoan Information 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 Guoan i.e., CITIC Guoan and Sportsoul go up and down completely randomly.
Pair Corralation between CITIC Guoan and Sportsoul
Assuming the 90 days trading horizon CITIC Guoan Information is expected to generate 0.69 times more return on investment than Sportsoul. However, CITIC Guoan Information is 1.45 times less risky than Sportsoul. It trades about 0.02 of its potential returns per unit of risk. Sportsoul Co Ltd is currently generating about 0.0 per unit of risk. If you would invest 263.00 in CITIC Guoan Information on October 16, 2024 and sell it today you would earn a total of 9.00 from holding CITIC Guoan Information or generate 3.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CITIC Guoan Information vs. Sportsoul Co Ltd
Performance |
| Timeline |
| CITIC Guoan Information |
| Sportsoul |
CITIC Guoan and Sportsoul Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CITIC Guoan and Sportsoul
The main advantage of trading using opposite CITIC Guoan and Sportsoul positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CITIC Guoan 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 Guoan vs. Runjian Communication Co | CITIC Guoan vs. FSPG Hi Tech Co | CITIC Guoan vs. Shenzhen Bioeasy Biotechnology | CITIC Guoan vs. Tianjin Hi Tech Development |
| Sportsoul vs. Jinsanjiang Silicon Material | Sportsoul vs. Anji Foodstuff Co | Sportsoul vs. Dosilicon Co | Sportsoul vs. Hengli Petrochemical Co |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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