Correlation Between Gansu Yasheng and China Sports
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By analyzing existing cross correlation between Gansu Yasheng Industrial and China Sports Industry, you can compare the effects of market volatilities on Gansu Yasheng 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 Gansu Yasheng with a short position of China Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Yasheng and China Sports.
Diversification Opportunities for Gansu Yasheng and China Sports
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gansu and China is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Yasheng Industrial 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 Gansu Yasheng 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 Gansu Yasheng Industrial 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 Gansu Yasheng i.e., Gansu Yasheng and China Sports go up and down completely randomly.
Pair Corralation between Gansu Yasheng and China Sports
Assuming the 90 days trading horizon Gansu Yasheng Industrial is expected to under-perform the China Sports. But the stock apears to be less risky and, when comparing its historical volatility, Gansu Yasheng Industrial is 1.18 times less risky than China Sports. The stock trades about 0.0 of its potential returns per unit of risk. The China Sports Industry is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 853.00 in China Sports Industry on November 28, 2024 and sell it today you would lose (48.00) from holding China Sports Industry or give up 5.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gansu Yasheng Industrial vs. China Sports Industry
Performance |
| Timeline |
| Gansu Yasheng Industrial |
| China Sports Industry |
Gansu Yasheng and China Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Yasheng and China Sports
The main advantage of trading using opposite Gansu Yasheng and China Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Yasheng 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.| Gansu Yasheng vs. Kidswant Children Products | Gansu Yasheng vs. Suzhou Douson Drilling | Gansu Yasheng vs. Shaanxi Meineng Clean | Gansu Yasheng vs. Shandong Longquan Pipeline |
| China Sports vs. Gan Yuan Foods | China Sports vs. Jiaozuo Wanfang Aluminum | China Sports vs. Sichuan Fulin Transportation | China Sports vs. Anji Foodstuff 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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