Correlation Between GUOMAI Culture and Sportsoul
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By analyzing existing cross correlation between GUOMAI Culture Media and Sportsoul Co Ltd, you can compare the effects of market volatilities on GUOMAI Culture 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 GUOMAI Culture with a short position of Sportsoul. Check out your portfolio center. Please also check ongoing floating volatility patterns of GUOMAI Culture and Sportsoul.
Diversification Opportunities for GUOMAI Culture and Sportsoul
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GUOMAI and Sportsoul is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding GUOMAI Culture Media and Sportsoul Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sportsoul and GUOMAI Culture 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 GUOMAI Culture Media 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 GUOMAI Culture i.e., GUOMAI Culture and Sportsoul go up and down completely randomly.
Pair Corralation between GUOMAI Culture and Sportsoul
Assuming the 90 days trading horizon GUOMAI Culture Media is expected to generate 1.26 times more return on investment than Sportsoul. However, GUOMAI Culture is 1.26 times more volatile than Sportsoul Co Ltd. It trades about -0.01 of its potential returns per unit of risk. Sportsoul Co Ltd is currently generating about -0.05 per unit of risk. If you would invest 3,642 in GUOMAI Culture Media on October 16, 2024 and sell it today you would lose (1,346) from holding GUOMAI Culture Media or give up 36.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GUOMAI Culture Media vs. Sportsoul Co Ltd
Performance |
| Timeline |
| GUOMAI Culture Media |
| Sportsoul |
GUOMAI Culture and Sportsoul Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GUOMAI Culture and Sportsoul
The main advantage of trading using opposite GUOMAI Culture and Sportsoul positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GUOMAI Culture 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.| GUOMAI Culture vs. GRINM Semiconductor Materials | GUOMAI Culture vs. StarPower Semiconductor | GUOMAI Culture vs. Semiconductor Manufacturing Intl | GUOMAI Culture vs. Will Semiconductor Co |
| Sportsoul vs. Jinsanjiang Silicon Material | Sportsoul vs. Anji Foodstuff Co | Sportsoul vs. Dosilicon Co | Sportsoul vs. Hengli Petrochemical 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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