Correlation Between Sportsoul and Shanghai Newtouch
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By analyzing existing cross correlation between Sportsoul Co Ltd and Shanghai Newtouch Software, you can compare the effects of market volatilities on Sportsoul and Shanghai Newtouch 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 Shanghai Newtouch. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sportsoul and Shanghai Newtouch.
Diversification Opportunities for Sportsoul and Shanghai Newtouch
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sportsoul and Shanghai is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Sportsoul Co Ltd and Shanghai Newtouch Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Newtouch 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 Shanghai Newtouch. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Newtouch has no effect on the direction of Sportsoul i.e., Sportsoul and Shanghai Newtouch go up and down completely randomly.
Pair Corralation between Sportsoul and Shanghai Newtouch
Assuming the 90 days trading horizon Sportsoul Co Ltd is expected to under-perform the Shanghai Newtouch. But the stock apears to be less risky and, when comparing its historical volatility, Sportsoul Co Ltd is 1.43 times less risky than Shanghai Newtouch. The stock trades about -0.14 of its potential returns per unit of risk. The Shanghai Newtouch Software is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,818 in Shanghai Newtouch Software on October 30, 2024 and sell it today you would earn a total of 33.00 from holding Shanghai Newtouch Software or generate 1.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sportsoul Co Ltd vs. Shanghai Newtouch Software
Performance |
| Timeline |
| Sportsoul |
| Shanghai Newtouch |
Sportsoul and Shanghai Newtouch Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sportsoul and Shanghai Newtouch
The main advantage of trading using opposite Sportsoul and Shanghai Newtouch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sportsoul position performs unexpectedly, Shanghai Newtouch 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 Shanghai Newtouch will offset losses from the drop in Shanghai Newtouch's long position.| Sportsoul vs. Hengli Industrial Development | Sportsoul vs. Tibet Huayu Mining | Sportsoul vs. Songz Automobile Air | Sportsoul vs. Sichuan Yahua Industrial |
| Shanghai Newtouch vs. Quectel Wireless Solutions | Shanghai Newtouch vs. Duzhe Publishing Media | Shanghai Newtouch vs. Chengdu B ray Media | Shanghai Newtouch vs. Heilongjiang Publishing Media |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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