Correlation Between Sportsoul and Xiandai Investment
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By analyzing existing cross correlation between Sportsoul Co Ltd and Xiandai Investment Co, you can compare the effects of market volatilities on Sportsoul and Xiandai Investment 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 Xiandai Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sportsoul and Xiandai Investment.
Diversification Opportunities for Sportsoul and Xiandai Investment
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sportsoul and Xiandai is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Sportsoul Co Ltd and Xiandai Investment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiandai Investment 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 Xiandai Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiandai Investment has no effect on the direction of Sportsoul i.e., Sportsoul and Xiandai Investment go up and down completely randomly.
Pair Corralation between Sportsoul and Xiandai Investment
Assuming the 90 days trading horizon Sportsoul Co Ltd is expected to generate 2.21 times more return on investment than Xiandai Investment. However, Sportsoul is 2.21 times more volatile than Xiandai Investment Co. It trades about -0.07 of its potential returns per unit of risk. Xiandai Investment Co is currently generating about -0.26 per unit of risk. If you would invest 1,193 in Sportsoul Co Ltd on October 25, 2024 and sell it today you would lose (64.00) from holding Sportsoul Co Ltd or give up 5.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sportsoul Co Ltd vs. Xiandai Investment Co
Performance |
| Timeline |
| Sportsoul |
| Xiandai Investment |
Sportsoul and Xiandai Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sportsoul and Xiandai Investment
The main advantage of trading using opposite Sportsoul and Xiandai Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sportsoul position performs unexpectedly, Xiandai Investment 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 Xiandai Investment will offset losses from the drop in Xiandai Investment's long position.| Sportsoul vs. PetroChina Co Ltd | Sportsoul vs. Gansu Jiu Steel | Sportsoul vs. Ming Yang Smart | Sportsoul vs. Aba Chemicals Corp |
| Xiandai Investment vs. Kweichow Moutai Co | Xiandai Investment vs. Contemporary Amperex Technology | Xiandai Investment vs. Beijing Roborock Technology | Xiandai Investment vs. BYD Co Ltd |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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