Correlation Between China Sports and Qiming Information
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By analyzing existing cross correlation between China Sports Industry and Qiming Information Technology, you can compare the effects of market volatilities on China Sports and Qiming Information 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 Qiming Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Sports and Qiming Information.
Diversification Opportunities for China Sports and Qiming Information
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and Qiming is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding China Sports Industry and Qiming Information Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qiming Information 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 Qiming Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qiming Information has no effect on the direction of China Sports i.e., China Sports and Qiming Information go up and down completely randomly.
Pair Corralation between China Sports and Qiming Information
Assuming the 90 days trading horizon China Sports Industry is expected to under-perform the Qiming Information. But the stock apears to be less risky and, when comparing its historical volatility, China Sports Industry is 1.61 times less risky than Qiming Information. The stock trades about -0.47 of its potential returns per unit of risk. The Qiming Information Technology is currently generating about -0.15 of returns per unit of risk over similar time horizon. If you would invest 2,198 in Qiming Information Technology on October 17, 2024 and sell it today you would lose (318.00) from holding Qiming Information Technology or give up 14.47% 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. Qiming Information Technology
Performance |
| Timeline |
| China Sports Industry |
| Qiming Information |
China Sports and Qiming Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Sports and Qiming Information
The main advantage of trading using opposite China Sports and Qiming Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Sports position performs unexpectedly, Qiming Information 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 Qiming Information will offset losses from the drop in Qiming Information's long position.| China Sports vs. Citic Offshore Helicopter | China Sports vs. Yuanjie Semiconductor Technology | China Sports vs. GRINM Semiconductor Materials | China Sports vs. StarPower Semiconductor |
| Qiming Information vs. China Sports Industry | Qiming Information vs. Shuhua Sports Co | Qiming Information vs. Hubeiyichang Transportation Group | Qiming Information vs. Dosilicon 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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