Correlation Between Guangdong Jinma and Sportsoul
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By analyzing existing cross correlation between Guangdong Jinma Entertainment and Sportsoul Co Ltd, you can compare the effects of market volatilities on Guangdong Jinma 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 Guangdong Jinma with a short position of Sportsoul. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Jinma and Sportsoul.
Diversification Opportunities for Guangdong Jinma and Sportsoul
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangdong and Sportsoul is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Jinma Entertainment and Sportsoul Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sportsoul and Guangdong Jinma 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 Guangdong Jinma Entertainment 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 Guangdong Jinma i.e., Guangdong Jinma and Sportsoul go up and down completely randomly.
Pair Corralation between Guangdong Jinma and Sportsoul
Assuming the 90 days trading horizon Guangdong Jinma Entertainment is expected to generate 1.02 times more return on investment than Sportsoul. However, Guangdong Jinma is 1.02 times more volatile than Sportsoul Co Ltd. It trades about 0.09 of its potential returns per unit of risk. Sportsoul Co Ltd is currently generating about 0.04 per unit of risk. If you would invest 897.00 in Guangdong Jinma Entertainment on November 3, 2024 and sell it today you would earn a total of 767.00 from holding Guangdong Jinma Entertainment or generate 85.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Jinma Entertainment vs. Sportsoul Co Ltd
Performance |
| Timeline |
| Guangdong Jinma Ente |
| Sportsoul |
Guangdong Jinma and Sportsoul Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Jinma and Sportsoul
The main advantage of trading using opposite Guangdong Jinma and Sportsoul positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Jinma 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.| Guangdong Jinma vs. Hefei Metalforming Mach | Guangdong Jinma vs. Beijing Bewinner Communications | Guangdong Jinma vs. Dr Peng Telecom | Guangdong Jinma vs. Anhui Tongguan Copper |
| Sportsoul vs. Jinhe Biotechnology Co | Sportsoul vs. Sharetronic Data Technology | Sportsoul vs. V V Food | Sportsoul vs. Holitech Technology 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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