Correlation Between China Sports and Citic Offshore
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By analyzing existing cross correlation between China Sports Industry and Citic Offshore Helicopter, you can compare the effects of market volatilities on China Sports and Citic Offshore 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 China Sports with a short position of Citic Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Sports and Citic Offshore.
Diversification Opportunities for China Sports and Citic Offshore
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and Citic is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding China Sports Industry and Citic Offshore Helicopter in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citic Offshore Helicopter and China Sports 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 China Sports Industry are associated (or correlated) with Citic Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citic Offshore Helicopter has no effect on the direction of China Sports i.e., China Sports and Citic Offshore go up and down completely randomly.
Pair Corralation between China Sports and Citic Offshore
Assuming the 90 days trading horizon China Sports Industry is expected to generate 0.57 times more return on investment than Citic Offshore. However, China Sports Industry is 1.76 times less risky than Citic Offshore. It trades about -0.18 of its potential returns per unit of risk. Citic Offshore Helicopter is currently generating about -0.23 per unit of risk. If you would invest 835.00 in China Sports Industry on October 29, 2024 and sell it today you would lose (57.00) from holding China Sports Industry or give up 6.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Sports Industry vs. Citic Offshore Helicopter
Performance |
| Timeline |
| China Sports Industry |
| Citic Offshore Helicopter |
China Sports and Citic Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Sports and Citic Offshore
The main advantage of trading using opposite China Sports and Citic Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Sports position performs unexpectedly, Citic Offshore 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 Citic Offshore will offset losses from the drop in Citic Offshore's long position.| China Sports vs. Agricultural Bank of | China Sports vs. Industrial and Commercial | China Sports vs. Bank of China | China Sports vs. China Construction Bank |
| Citic Offshore vs. Linewell Software Co | Citic Offshore vs. Haima Automobile Group | Citic Offshore vs. Beijing Bewinner Communications | Citic Offshore vs. Songz Automobile Air |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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