Correlation Between Sportsoul and GUOMAI Culture
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By analyzing existing cross correlation between Sportsoul Co Ltd and GUOMAI Culture Media, you can compare the effects of market volatilities on Sportsoul and GUOMAI Culture 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 GUOMAI Culture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sportsoul and GUOMAI Culture.
Diversification Opportunities for Sportsoul and GUOMAI Culture
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sportsoul and GUOMAI is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Sportsoul Co Ltd and GUOMAI Culture Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GUOMAI Culture Media 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 GUOMAI Culture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GUOMAI Culture Media has no effect on the direction of Sportsoul i.e., Sportsoul and GUOMAI Culture go up and down completely randomly.
Pair Corralation between Sportsoul and GUOMAI Culture
Assuming the 90 days trading horizon Sportsoul Co Ltd is expected to under-perform the GUOMAI Culture. But the stock apears to be less risky and, when comparing its historical volatility, Sportsoul Co Ltd is 1.26 times less risky than GUOMAI Culture. The stock trades about -0.05 of its potential returns per unit of risk. The GUOMAI Culture Media is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 3,642 in GUOMAI Culture Media on October 16, 2024 and sell it today you would lose (1,346) from holding GUOMAI Culture Media or give up 36.96% 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. GUOMAI Culture Media
Performance |
| Timeline |
| Sportsoul |
| GUOMAI Culture Media |
Sportsoul and GUOMAI Culture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sportsoul and GUOMAI Culture
The main advantage of trading using opposite Sportsoul and GUOMAI Culture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sportsoul position performs unexpectedly, GUOMAI Culture 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 GUOMAI Culture will offset losses from the drop in GUOMAI Culture's long position.| Sportsoul vs. Jinsanjiang Silicon Material | Sportsoul vs. Anji Foodstuff Co | Sportsoul vs. Dosilicon Co | Sportsoul vs. Hengli Petrochemical Co |
| GUOMAI Culture vs. GRINM Semiconductor Materials | GUOMAI Culture vs. StarPower Semiconductor | GUOMAI Culture vs. Semiconductor Manufacturing Intl | GUOMAI Culture vs. Will Semiconductor 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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