Correlation Between Gansu Huangtai and China Sports
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By analyzing existing cross correlation between Gansu Huangtai Wine marketing and China Sports Industry, you can compare the effects of market volatilities on Gansu Huangtai 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 Gansu Huangtai with a short position of China Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Huangtai and China Sports.
Diversification Opportunities for Gansu Huangtai and China Sports
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Gansu and China is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Huangtai Wine marketing 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 Gansu Huangtai 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 Gansu Huangtai Wine marketing 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 Gansu Huangtai i.e., Gansu Huangtai and China Sports go up and down completely randomly.
Pair Corralation between Gansu Huangtai and China Sports
Assuming the 90 days trading horizon Gansu Huangtai is expected to generate 1.24 times less return on investment than China Sports. In addition to that, Gansu Huangtai is 1.26 times more volatile than China Sports Industry. It trades about 0.04 of its total potential returns per unit of risk. China Sports Industry is currently generating about 0.06 per unit of volatility. If you would invest 814.00 in China Sports Industry on September 27, 2024 and sell it today you would earn a total of 28.00 from holding China Sports Industry or generate 3.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gansu Huangtai Wine marketing vs. China Sports Industry
Performance |
| Timeline |
| Gansu Huangtai Wine |
| China Sports Industry |
Gansu Huangtai and China Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Huangtai and China Sports
The main advantage of trading using opposite Gansu Huangtai and China Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Huangtai 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.| Gansu Huangtai vs. Jiangsu Phoenix Publishing | Gansu Huangtai vs. Wangneng Environment Co | Gansu Huangtai vs. Dynagreen Environmental Protection | Gansu Huangtai vs. Chinese Universe Publishing |
| China Sports vs. PetroChina Co Ltd | China Sports vs. China Mobile Limited | China Sports vs. CNOOC Limited | China Sports vs. Ping An Insurance |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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