Correlation Between Longxing Chemical and Sportsoul
Specify exactly 2 symbols:
By analyzing existing cross correlation between Longxing Chemical Stock and Sportsoul Co Ltd, you can compare the effects of market volatilities on Longxing Chemical and Sportsoul 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 Longxing Chemical with a short position of Sportsoul. Check out your portfolio center. Please also check ongoing floating volatility patterns of Longxing Chemical and Sportsoul.
Diversification Opportunities for Longxing Chemical and Sportsoul
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Longxing and Sportsoul is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Longxing Chemical Stock and Sportsoul Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sportsoul and Longxing Chemical 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 Longxing Chemical Stock are associated (or correlated) with Sportsoul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sportsoul has no effect on the direction of Longxing Chemical i.e., Longxing Chemical and Sportsoul go up and down completely randomly.
Pair Corralation between Longxing Chemical and Sportsoul
Assuming the 90 days trading horizon Longxing Chemical Stock is expected to generate 1.03 times more return on investment than Sportsoul. However, Longxing Chemical is 1.03 times more volatile than Sportsoul Co Ltd. It trades about -0.03 of its potential returns per unit of risk. Sportsoul Co Ltd is currently generating about -0.25 per unit of risk. If you would invest 560.00 in Longxing Chemical Stock on October 11, 2024 and sell it today you would lose (23.00) from holding Longxing Chemical Stock or give up 4.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Longxing Chemical Stock vs. Sportsoul Co Ltd
Performance |
| Timeline |
| Longxing Chemical Stock |
| Sportsoul |
Longxing Chemical and Sportsoul Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Longxing Chemical and Sportsoul
The main advantage of trading using opposite Longxing Chemical and Sportsoul positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Longxing Chemical position performs unexpectedly, Sportsoul 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 Sportsoul will offset losses from the drop in Sportsoul's long position.| Longxing Chemical vs. Easyhome New Retail | Longxing Chemical vs. Eastern Air Logistics | Longxing Chemical vs. Everdisplay Optronics Shanghai | Longxing Chemical vs. Xiamen Goldenhome Co |
| Sportsoul vs. Shanghai CEO Environmental | Sportsoul vs. Longxing Chemical Stock | Sportsoul vs. Wuxi Chemical Equipment | Sportsoul vs. Xinxiang Chemical Fiber |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |