Correlation Between Sportsoul and CITIC Guoan
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By analyzing existing cross correlation between Sportsoul Co Ltd and CITIC Guoan Information, you can compare the effects of market volatilities on Sportsoul and CITIC Guoan 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 Sportsoul with a short position of CITIC Guoan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sportsoul and CITIC Guoan.
Diversification Opportunities for Sportsoul and CITIC Guoan
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sportsoul and CITIC is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Sportsoul Co Ltd and CITIC Guoan Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITIC Guoan Information and Sportsoul 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 Sportsoul Co Ltd are associated (or correlated) with CITIC Guoan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CITIC Guoan Information has no effect on the direction of Sportsoul i.e., Sportsoul and CITIC Guoan go up and down completely randomly.
Pair Corralation between Sportsoul and CITIC Guoan
Assuming the 90 days trading horizon Sportsoul Co Ltd is expected to under-perform the CITIC Guoan. In addition to that, Sportsoul is 1.45 times more volatile than CITIC Guoan Information. It trades about 0.0 of its total potential returns per unit of risk. CITIC Guoan Information is currently generating about 0.02 per unit of volatility. 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 |
Sportsoul Co Ltd vs. CITIC Guoan Information
Performance |
| Timeline |
| Sportsoul |
| CITIC Guoan Information |
Sportsoul and CITIC Guoan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sportsoul and CITIC Guoan
The main advantage of trading using opposite Sportsoul and CITIC Guoan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sportsoul position performs unexpectedly, CITIC Guoan 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 CITIC Guoan will offset losses from the drop in CITIC Guoan's long position.| Sportsoul vs. Jinsanjiang Silicon Material | Sportsoul vs. Anji Foodstuff Co | Sportsoul vs. Dosilicon Co | Sportsoul vs. Hengli Petrochemical Co |
| 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 |
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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