Correlation Between Sportsoul and Nantong Haixing
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By analyzing existing cross correlation between Sportsoul Co Ltd and Nantong Haixing Electronics, you can compare the effects of market volatilities on Sportsoul and Nantong Haixing 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 Nantong Haixing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sportsoul and Nantong Haixing.
Diversification Opportunities for Sportsoul and Nantong Haixing
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sportsoul and Nantong is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Sportsoul Co Ltd and Nantong Haixing Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nantong Haixing Elec 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 Nantong Haixing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nantong Haixing Elec has no effect on the direction of Sportsoul i.e., Sportsoul and Nantong Haixing go up and down completely randomly.
Pair Corralation between Sportsoul and Nantong Haixing
Assuming the 90 days trading horizon Sportsoul Co Ltd is expected to under-perform the Nantong Haixing. In addition to that, Sportsoul is 2.12 times more volatile than Nantong Haixing Electronics. It trades about -0.14 of its total potential returns per unit of risk. Nantong Haixing Electronics is currently generating about -0.05 per unit of volatility. If you would invest 1,410 in Nantong Haixing Electronics on October 30, 2024 and sell it today you would lose (54.00) from holding Nantong Haixing Electronics or give up 3.83% 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. Nantong Haixing Electronics
Performance |
| Timeline |
| Sportsoul |
| Nantong Haixing Elec |
Sportsoul and Nantong Haixing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sportsoul and Nantong Haixing
The main advantage of trading using opposite Sportsoul and Nantong Haixing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sportsoul position performs unexpectedly, Nantong Haixing 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 Nantong Haixing will offset losses from the drop in Nantong Haixing's long position.| Sportsoul vs. Hengli Industrial Development | Sportsoul vs. Tibet Huayu Mining | Sportsoul vs. Songz Automobile Air | Sportsoul vs. Sichuan Yahua Industrial |
| Nantong Haixing vs. Shandong Rike Chemical | Nantong Haixing vs. Zhongshan Broad Ocean Motor | Nantong Haixing vs. Liuzhou Chemical Industry | Nantong Haixing vs. Jiangsu Financial Leasing |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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