Correlation Between China Sports and Hainan Drinda
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By analyzing existing cross correlation between China Sports Industry and Hainan Drinda Automotive, you can compare the effects of market volatilities on China Sports and Hainan Drinda 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 Hainan Drinda. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Sports and Hainan Drinda.
Diversification Opportunities for China Sports and Hainan Drinda
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and Hainan is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding China Sports Industry and Hainan Drinda Automotive in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hainan Drinda Automotive 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 Hainan Drinda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hainan Drinda Automotive has no effect on the direction of China Sports i.e., China Sports and Hainan Drinda go up and down completely randomly.
Pair Corralation between China Sports and Hainan Drinda
Assuming the 90 days trading horizon China Sports Industry is expected to generate 0.57 times more return on investment than Hainan Drinda. However, China Sports Industry is 1.76 times less risky than Hainan Drinda. It trades about 0.02 of its potential returns per unit of risk. Hainan Drinda Automotive is currently generating about -0.02 per unit of risk. If you would invest 849.00 in China Sports Industry on September 14, 2024 and sell it today you would earn a total of 52.00 from holding China Sports Industry or generate 6.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Sports Industry vs. Hainan Drinda Automotive
Performance |
| Timeline |
| China Sports Industry |
| Hainan Drinda Automotive |
China Sports and Hainan Drinda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Sports and Hainan Drinda
The main advantage of trading using opposite China Sports and Hainan Drinda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Sports position performs unexpectedly, Hainan Drinda 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 Hainan Drinda will offset losses from the drop in Hainan Drinda's long position.| China Sports vs. China Life Insurance | China Sports vs. Cinda Securities Co | China Sports vs. Piotech Inc A | China Sports vs. Dongxing Sec Co |
| Hainan Drinda vs. Tieling Newcity Investment | Hainan Drinda vs. China Sports Industry | Hainan Drinda vs. Vanfund Urban Investment | Hainan Drinda vs. Beijing Mainstreets 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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