Correlation Between Sunwoda Electronic and China Sports
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By analyzing existing cross correlation between Sunwoda Electronic and China Sports Industry, you can compare the effects of market volatilities on Sunwoda Electronic and China 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 Sunwoda Electronic with a short position of China Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunwoda Electronic and China Sports.
Diversification Opportunities for Sunwoda Electronic and China Sports
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sunwoda and China is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Sunwoda Electronic and China Sports Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Sports Industry and Sunwoda Electronic 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 Sunwoda Electronic are associated (or correlated) with China Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Sports Industry has no effect on the direction of Sunwoda Electronic i.e., Sunwoda Electronic and China Sports go up and down completely randomly.
Pair Corralation between Sunwoda Electronic and China Sports
Assuming the 90 days trading horizon Sunwoda Electronic is expected to generate 0.85 times more return on investment than China Sports. However, Sunwoda Electronic is 1.18 times less risky than China Sports. It trades about -0.18 of its potential returns per unit of risk. China Sports Industry is currently generating about -0.46 per unit of risk. If you would invest 2,295 in Sunwoda Electronic on October 19, 2024 and sell it today you would lose (185.00) from holding Sunwoda Electronic or give up 8.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sunwoda Electronic vs. China Sports Industry
Performance |
| Timeline |
| Sunwoda Electronic |
| China Sports Industry |
Sunwoda Electronic and China Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunwoda Electronic and China Sports
The main advantage of trading using opposite Sunwoda Electronic and China Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunwoda Electronic position performs unexpectedly, China 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 China Sports will offset losses from the drop in China Sports' long position.| Sunwoda Electronic vs. China Sports Industry | Sunwoda Electronic vs. Shuhua Sports Co | Sunwoda Electronic vs. Anhui Shiny Electronic | Sunwoda Electronic vs. East Money Information |
| China Sports vs. CSSC Offshore Marine | China Sports vs. Weichai Heavy Machinery | China Sports vs. Zhejiang Yinlun Machinery | China Sports vs. Xiamen Goldenhome 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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