Correlation Between China Merchants and Lander Sports
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By analyzing existing cross correlation between China Merchants Shekou and Lander Sports Development, you can compare the effects of market volatilities on China Merchants and Lander Sports 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 China Merchants with a short position of Lander Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Merchants and Lander Sports.
Diversification Opportunities for China Merchants and Lander Sports
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and Lander is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding China Merchants Shekou and Lander Sports Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lander Sports Development and China Merchants 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 China Merchants Shekou are associated (or correlated) with Lander Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lander Sports Development has no effect on the direction of China Merchants i.e., China Merchants and Lander Sports go up and down completely randomly.
Pair Corralation between China Merchants and Lander Sports
Assuming the 90 days trading horizon China Merchants is expected to generate 5.5 times less return on investment than Lander Sports. In addition to that, China Merchants is 1.01 times more volatile than Lander Sports Development. It trades about 0.0 of its total potential returns per unit of risk. Lander Sports Development is currently generating about 0.02 per unit of volatility. If you would invest 285.00 in Lander Sports Development on September 12, 2024 and sell it today you would earn a total of 40.00 from holding Lander Sports Development or generate 14.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Merchants Shekou vs. Lander Sports Development
Performance |
| Timeline |
| China Merchants Shekou |
| Lander Sports Development |
China Merchants and Lander Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Merchants and Lander Sports
The main advantage of trading using opposite China Merchants and Lander Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Merchants position performs unexpectedly, Lander Sports 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 Lander Sports will offset losses from the drop in Lander Sports' long position.| China Merchants vs. Chongqing Brewery Co | China Merchants vs. Duzhe Publishing Media | China Merchants vs. Chinese Universe Publishing | China Merchants vs. Zhejiang Publishing Media |
| Lander Sports vs. Industrial and Commercial | Lander Sports vs. China Construction Bank | Lander Sports vs. Bank of China | Lander Sports vs. Agricultural Bank of |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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