Correlation Between China Sports and Beijing SPC
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By analyzing existing cross correlation between China Sports Industry and Beijing SPC Environment, you can compare the effects of market volatilities on China Sports and Beijing SPC 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 SPC. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Sports and Beijing SPC.
Diversification Opportunities for China Sports and Beijing SPC
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Beijing is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding China Sports Industry and Beijing SPC Environment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing SPC Environment 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 SPC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing SPC Environment has no effect on the direction of China Sports i.e., China Sports and Beijing SPC go up and down completely randomly.
Pair Corralation between China Sports and Beijing SPC
Assuming the 90 days trading horizon China Sports Industry is expected to under-perform the Beijing SPC. In addition to that, China Sports is 1.11 times more volatile than Beijing SPC Environment. It trades about -0.07 of its total potential returns per unit of risk. Beijing SPC Environment is currently generating about -0.07 per unit of volatility. If you would invest 404.00 in Beijing SPC Environment on November 30, 2024 and sell it today you would lose (21.00) from holding Beijing SPC Environment or give up 5.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Sports Industry vs. Beijing SPC Environment
Performance |
| Timeline |
| China Sports Industry |
| Beijing SPC Environment |
China Sports and Beijing SPC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Sports and Beijing SPC
The main advantage of trading using opposite China Sports and Beijing SPC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Sports position performs unexpectedly, Beijing SPC 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 SPC will offset losses from the drop in Beijing SPC's long position.| China Sports vs. Guangdong Transtek Medical | China Sports vs. Zhonghang Electronic Measuring | China Sports vs. Xian International Medical | China Sports vs. Touchstone International Medical |
| Beijing SPC vs. Zhongshan Broad Ocean Motor | Beijing SPC vs. Huawen Media Investment | Beijing SPC vs. Jiangsu Broadcasting Cable | Beijing SPC vs. Shaanxi Broadcast TV |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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