Correlation Between China Sports and North Chemical
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By analyzing existing cross correlation between China Sports Industry and North Chemical Industries, you can compare the effects of market volatilities on China Sports and North Chemical 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 North Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Sports and North Chemical.
Diversification Opportunities for China Sports and North Chemical
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and North is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding China Sports Industry and North Chemical Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on North Chemical Industries 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 North Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of North Chemical Industries has no effect on the direction of China Sports i.e., China Sports and North Chemical go up and down completely randomly.
Pair Corralation between China Sports and North Chemical
Assuming the 90 days trading horizon China Sports Industry is expected to generate 0.61 times more return on investment than North Chemical. However, China Sports Industry is 1.63 times less risky than North Chemical. It trades about 0.0 of its potential returns per unit of risk. North Chemical Industries is currently generating about -0.08 per unit of risk. If you would invest 860.00 in China Sports Industry on September 12, 2024 and sell it today you would lose (4.00) from holding China Sports Industry or give up 0.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
China Sports Industry vs. North Chemical Industries
Performance |
| Timeline |
| China Sports Industry |
| North Chemical Industries |
China Sports and North Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Sports and North Chemical
The main advantage of trading using opposite China Sports and North Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Sports position performs unexpectedly, North Chemical 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 North Chemical will offset losses from the drop in North Chemical's long position.| China Sports vs. Industrial and Commercial | China Sports vs. China Construction Bank | China Sports vs. Bank of China | China Sports vs. Agricultural Bank of |
| North Chemical vs. Xiamen Goldenhome Co | North Chemical vs. Tongyu Communication | North Chemical vs. Sichuan Jinshi Technology | North Chemical vs. Shanghai Shuixing Home |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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