Correlation Between China Sports and Beijing Venustech
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By analyzing existing cross correlation between China Sports Industry and Beijing Venustech, you can compare the effects of market volatilities on China Sports and Beijing Venustech 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 Beijing Venustech. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Sports and Beijing Venustech.
Diversification Opportunities for China Sports and Beijing Venustech
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Beijing is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding China Sports Industry and Beijing Venustech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Venustech 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 Beijing Venustech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Venustech has no effect on the direction of China Sports i.e., China Sports and Beijing Venustech go up and down completely randomly.
Pair Corralation between China Sports and Beijing Venustech
Assuming the 90 days trading horizon China Sports Industry is expected to generate 0.52 times more return on investment than Beijing Venustech. However, China Sports Industry is 1.94 times less risky than Beijing Venustech. It trades about 0.15 of its potential returns per unit of risk. Beijing Venustech is currently generating about 0.04 per unit of risk. If you would invest 799.00 in China Sports Industry on September 2, 2024 and sell it today you would earn a total of 42.00 from holding China Sports Industry or generate 5.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Sports Industry vs. Beijing Venustech
Performance |
| Timeline |
| China Sports Industry |
| Beijing Venustech |
China Sports and Beijing Venustech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Sports and Beijing Venustech
The main advantage of trading using opposite China Sports and Beijing Venustech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Sports position performs unexpectedly, Beijing Venustech 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 Beijing Venustech will offset losses from the drop in Beijing Venustech's long position.| China Sports vs. Huitong Construction Group | China Sports vs. Shaanxi Construction Machinery | China Sports vs. Long Yuan Construction | China Sports vs. China Life Insurance |
| Beijing Venustech vs. Xiandai Investment Co | Beijing Venustech vs. TongFu Microelectronics Co | Beijing Venustech vs. Aurora Optoelectronics Co | Beijing Venustech vs. Chengdu Xingrong Investment |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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