Correlation Between China Sports and Xizi Clean
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Sports Industry and Xizi Clean Energy, you can compare the effects of market volatilities on China Sports and Xizi Clean 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 Xizi Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Sports and Xizi Clean.
Diversification Opportunities for China Sports and Xizi Clean
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and Xizi is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding China Sports Industry and Xizi Clean Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xizi Clean Energy 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 Xizi Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xizi Clean Energy has no effect on the direction of China Sports i.e., China Sports and Xizi Clean go up and down completely randomly.
Pair Corralation between China Sports and Xizi Clean
Assuming the 90 days trading horizon China Sports Industry is expected to under-perform the Xizi Clean. But the stock apears to be less risky and, when comparing its historical volatility, China Sports Industry is 1.69 times less risky than Xizi Clean. The stock trades about -0.28 of its potential returns per unit of risk. The Xizi Clean Energy is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 1,129 in Xizi Clean Energy on October 25, 2024 and sell it today you would earn a total of 131.00 from holding Xizi Clean Energy or generate 11.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Sports Industry vs. Xizi Clean Energy
Performance |
| Timeline |
| China Sports Industry |
| Xizi Clean Energy |
China Sports and Xizi Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Sports and Xizi Clean
The main advantage of trading using opposite China Sports and Xizi Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Sports position performs unexpectedly, Xizi Clean 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 Xizi Clean will offset losses from the drop in Xizi Clean's long position.| China Sports vs. Inspur Software Co | China Sports vs. Xiwang Foodstuffs Co | China Sports vs. Servyou Software Group | China Sports vs. Xiangpiaopiao Food Co |
| Xizi Clean vs. Beijing Mainstreets Investment | Xizi Clean vs. Southchip Semiconductor Technology | Xizi Clean vs. China Sports Industry | Xizi Clean vs. Zhongrun Resources 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |