Correlation Between Sportsoul and Xiamen Jihong
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By analyzing existing cross correlation between Sportsoul Co Ltd and Xiamen Jihong Package, you can compare the effects of market volatilities on Sportsoul and Xiamen Jihong 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 Xiamen Jihong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sportsoul and Xiamen Jihong.
Diversification Opportunities for Sportsoul and Xiamen Jihong
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sportsoul and Xiamen is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Sportsoul Co Ltd and Xiamen Jihong Package in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen Jihong Package 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 Xiamen Jihong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen Jihong Package has no effect on the direction of Sportsoul i.e., Sportsoul and Xiamen Jihong go up and down completely randomly.
Pair Corralation between Sportsoul and Xiamen Jihong
Assuming the 90 days trading horizon Sportsoul is expected to generate 1.06 times less return on investment than Xiamen Jihong. In addition to that, Sportsoul is 1.04 times more volatile than Xiamen Jihong Package. It trades about 0.28 of its total potential returns per unit of risk. Xiamen Jihong Package is currently generating about 0.31 per unit of volatility. If you would invest 1,290 in Xiamen Jihong Package on September 2, 2024 and sell it today you would earn a total of 344.00 from holding Xiamen Jihong Package or generate 26.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sportsoul Co Ltd vs. Xiamen Jihong Package
Performance |
| Timeline |
| Sportsoul |
| Xiamen Jihong Package |
Sportsoul and Xiamen Jihong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sportsoul and Xiamen Jihong
The main advantage of trading using opposite Sportsoul and Xiamen Jihong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sportsoul position performs unexpectedly, Xiamen Jihong 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 Xiamen Jihong will offset losses from the drop in Xiamen Jihong's long position.| Sportsoul vs. Nanjing Putian Telecommunications | Sportsoul vs. Shenzhen Hifuture Electric | Sportsoul vs. Tianjin Realty Development | Sportsoul vs. Shenyang Huitian Thermal |
| Xiamen Jihong vs. Anhui Gujing Distillery | Xiamen Jihong vs. Jiugui Liquor Co | Xiamen Jihong vs. Beijing Yanjing Brewery | Xiamen Jihong vs. Hengdian Entertainment 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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