Correlation Between Chongqing Brewery and China Sports
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By analyzing existing cross correlation between Chongqing Brewery Co and China Sports Industry, you can compare the effects of market volatilities on Chongqing Brewery 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 Chongqing Brewery with a short position of China Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chongqing Brewery and China Sports.
Diversification Opportunities for Chongqing Brewery and China Sports
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Chongqing and China is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Chongqing Brewery Co 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 Chongqing Brewery 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 Chongqing Brewery Co 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 Chongqing Brewery i.e., Chongqing Brewery and China Sports go up and down completely randomly.
Pair Corralation between Chongqing Brewery and China Sports
Assuming the 90 days trading horizon Chongqing Brewery Co is expected to under-perform the China Sports. In addition to that, Chongqing Brewery is 1.03 times more volatile than China Sports Industry. It trades about -0.05 of its total potential returns per unit of risk. China Sports Industry is currently generating about 0.01 per unit of volatility. If you would invest 881.00 in China Sports Industry on August 30, 2024 and sell it today you would lose (51.00) from holding China Sports Industry or give up 5.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chongqing Brewery Co vs. China Sports Industry
Performance |
| Timeline |
| Chongqing Brewery |
| China Sports Industry |
Chongqing Brewery and China Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chongqing Brewery and China Sports
The main advantage of trading using opposite Chongqing Brewery and China Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chongqing Brewery 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.| Chongqing Brewery vs. PetroChina Co Ltd | Chongqing Brewery vs. China Mobile Limited | Chongqing Brewery vs. Ping An Insurance | Chongqing Brewery vs. China Petroleum Chemical |
| China Sports vs. Cambricon Technologies Corp | China Sports vs. Empyrean Technology Co | China Sports vs. Kuang Chi Technologies | China Sports vs. Gansu Jiu Steel |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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