Correlation Between China Sports and Tianshui Huatian
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By analyzing existing cross correlation between China Sports Industry and Tianshui Huatian Technology, you can compare the effects of market volatilities on China Sports and Tianshui Huatian 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 Tianshui Huatian. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Sports and Tianshui Huatian.
Diversification Opportunities for China Sports and Tianshui Huatian
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Tianshui is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding China Sports Industry and Tianshui Huatian Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianshui Huatian Tec 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 Tianshui Huatian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianshui Huatian Tec has no effect on the direction of China Sports i.e., China Sports and Tianshui Huatian go up and down completely randomly.
Pair Corralation between China Sports and Tianshui Huatian
Assuming the 90 days trading horizon China Sports Industry is expected to generate 0.44 times more return on investment than Tianshui Huatian. However, China Sports Industry is 2.3 times less risky than Tianshui Huatian. It trades about 0.12 of its potential returns per unit of risk. Tianshui Huatian Technology is currently generating about -0.08 per unit of risk. If you would invest 792.00 in China Sports Industry on August 30, 2024 and sell it today you would earn a total of 38.00 from holding China Sports Industry or generate 4.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
China Sports Industry vs. Tianshui Huatian Technology
Performance |
| Timeline |
| China Sports Industry |
| Tianshui Huatian Tec |
China Sports and Tianshui Huatian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Sports and Tianshui Huatian
The main advantage of trading using opposite China Sports and Tianshui Huatian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Sports position performs unexpectedly, Tianshui Huatian 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 Tianshui Huatian will offset losses from the drop in Tianshui Huatian's long position.| China Sports vs. Industrial and Commercial | China Sports vs. Agricultural Bank of | China Sports vs. China Construction Bank | China Sports vs. Bank of China |
| Tianshui Huatian vs. China Sports Industry | Tianshui Huatian vs. Sino Platinum Metals Co | Tianshui Huatian vs. Chongqing Shunbo Aluminum | Tianshui Huatian vs. China Aluminum International |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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