Correlation Between Shenzhen Glory and Sportsoul
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By analyzing existing cross correlation between Shenzhen Glory Medical and Sportsoul Co Ltd, you can compare the effects of market volatilities on Shenzhen Glory 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 Shenzhen Glory with a short position of Sportsoul. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Glory and Sportsoul.
Diversification Opportunities for Shenzhen Glory and Sportsoul
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenzhen and Sportsoul is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Glory Medical and Sportsoul Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sportsoul and Shenzhen Glory 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 Shenzhen Glory Medical 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 Shenzhen Glory i.e., Shenzhen Glory and Sportsoul go up and down completely randomly.
Pair Corralation between Shenzhen Glory and Sportsoul
Assuming the 90 days trading horizon Shenzhen Glory Medical is expected to under-perform the Sportsoul. But the stock apears to be less risky and, when comparing its historical volatility, Shenzhen Glory Medical is 1.28 times less risky than Sportsoul. The stock trades about -0.35 of its potential returns per unit of risk. The Sportsoul Co Ltd is currently generating about -0.25 of returns per unit of risk over similar time horizon. If you would invest 1,388 in Sportsoul Co Ltd on October 11, 2024 and sell it today you would lose (274.00) from holding Sportsoul Co Ltd or give up 19.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Glory Medical vs. Sportsoul Co Ltd
Performance |
| Timeline |
| Shenzhen Glory Medical |
| Sportsoul |
Shenzhen Glory and Sportsoul Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Glory and Sportsoul
The main advantage of trading using opposite Shenzhen Glory and Sportsoul positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Glory 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.| Shenzhen Glory vs. Advanced Technology Materials | Shenzhen Glory vs. Vohringer Home Technology | Shenzhen Glory vs. Western Metal Materials | Shenzhen Glory vs. Shanghai Phichem Material |
| Sportsoul vs. Zhongzhu Medical Holdings | Sportsoul vs. Shenzhen Glory Medical | Sportsoul vs. Hengkang Medical Group | Sportsoul vs. Linewell Software Co |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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