Correlation Between Sportsoul and Hang Xiao
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By analyzing existing cross correlation between Sportsoul Co Ltd and Hang Xiao Steel, you can compare the effects of market volatilities on Sportsoul and Hang Xiao 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 Hang Xiao. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sportsoul and Hang Xiao.
Diversification Opportunities for Sportsoul and Hang Xiao
Very poor diversification
The 3 months correlation between Sportsoul and Hang is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Sportsoul Co Ltd and Hang Xiao Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hang Xiao Steel 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 Hang Xiao. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hang Xiao Steel has no effect on the direction of Sportsoul i.e., Sportsoul and Hang Xiao go up and down completely randomly.
Pair Corralation between Sportsoul and Hang Xiao
Assuming the 90 days trading horizon Sportsoul Co Ltd is expected to generate 1.8 times more return on investment than Hang Xiao. However, Sportsoul is 1.8 times more volatile than Hang Xiao Steel. It trades about 0.19 of its potential returns per unit of risk. Hang Xiao Steel is currently generating about 0.0 per unit of risk. If you would invest 1,213 in Sportsoul Co Ltd on August 30, 2024 and sell it today you would earn a total of 197.00 from holding Sportsoul Co Ltd or generate 16.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sportsoul Co Ltd vs. Hang Xiao Steel
Performance |
| Timeline |
| Sportsoul |
| Hang Xiao Steel |
Sportsoul and Hang Xiao Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sportsoul and Hang Xiao
The main advantage of trading using opposite Sportsoul and Hang Xiao positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sportsoul position performs unexpectedly, Hang Xiao 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 Hang Xiao will offset losses from the drop in Hang Xiao's long position.| Sportsoul vs. Cambricon Technologies Corp | Sportsoul vs. Loongson Technology Corp | Sportsoul vs. Shenzhen Fortune Trend | Sportsoul vs. Chongqing Road Bridge |
| Hang Xiao vs. Biwin Storage Technology | Hang Xiao vs. PetroChina Co Ltd | Hang Xiao vs. Industrial and Commercial | Hang Xiao vs. China Construction Bank |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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