Correlation Between China Sports and Shantou Wanshun
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By analyzing existing cross correlation between China Sports Industry and Shantou Wanshun Package, you can compare the effects of market volatilities on China Sports and Shantou Wanshun 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 Shantou Wanshun. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Sports and Shantou Wanshun.
Diversification Opportunities for China Sports and Shantou Wanshun
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between China and Shantou is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding China Sports Industry and Shantou Wanshun Package in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shantou Wanshun Package 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 Shantou Wanshun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shantou Wanshun Package has no effect on the direction of China Sports i.e., China Sports and Shantou Wanshun go up and down completely randomly.
Pair Corralation between China Sports and Shantou Wanshun
Assuming the 90 days trading horizon China Sports Industry is expected to under-perform the Shantou Wanshun. In addition to that, China Sports is 1.02 times more volatile than Shantou Wanshun Package. It trades about -0.65 of its total potential returns per unit of risk. Shantou Wanshun Package is currently generating about -0.47 per unit of volatility. If you would invest 555.00 in Shantou Wanshun Package on October 16, 2024 and sell it today you would lose (108.00) from holding Shantou Wanshun Package or give up 19.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Sports Industry vs. Shantou Wanshun Package
Performance |
| Timeline |
| China Sports Industry |
| Shantou Wanshun Package |
China Sports and Shantou Wanshun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Sports and Shantou Wanshun
The main advantage of trading using opposite China Sports and Shantou Wanshun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Sports position performs unexpectedly, Shantou Wanshun 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 Shantou Wanshun will offset losses from the drop in Shantou Wanshun's long position.| China Sports vs. Guangzhou Haozhi Industrial | China Sports vs. Runjian Communication Co | China Sports vs. Guangxi Wuzhou Communications | China Sports vs. Guangzhou Seagull Kitchen |
| Shantou Wanshun vs. Lutian Machinery Co | Shantou Wanshun vs. China Sports Industry | Shantou Wanshun vs. Ningbo Construction Co | Shantou Wanshun vs. Gifore Agricultural Machinery |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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