Correlation Between China Sports and Marssenger Kitchenware
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By analyzing existing cross correlation between China Sports Industry and Marssenger Kitchenware Co, you can compare the effects of market volatilities on China Sports and Marssenger Kitchenware 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 Marssenger Kitchenware. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Sports and Marssenger Kitchenware.
Diversification Opportunities for China Sports and Marssenger Kitchenware
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Marssenger is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding China Sports Industry and Marssenger Kitchenware Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marssenger Kitchenware 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 Marssenger Kitchenware. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marssenger Kitchenware has no effect on the direction of China Sports i.e., China Sports and Marssenger Kitchenware go up and down completely randomly.
Pair Corralation between China Sports and Marssenger Kitchenware
Assuming the 90 days trading horizon China Sports Industry is expected to generate 0.63 times more return on investment than Marssenger Kitchenware. However, China Sports Industry is 1.58 times less risky than Marssenger Kitchenware. It trades about -0.05 of its potential returns per unit of risk. Marssenger Kitchenware Co is currently generating about -0.06 per unit of risk. If you would invest 841.00 in China Sports Industry on October 30, 2024 and sell it today you would lose (61.00) from holding China Sports Industry or give up 7.25% 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. Marssenger Kitchenware Co
Performance |
| Timeline |
| China Sports Industry |
| Marssenger Kitchenware |
China Sports and Marssenger Kitchenware Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Sports and Marssenger Kitchenware
The main advantage of trading using opposite China Sports and Marssenger Kitchenware positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Sports position performs unexpectedly, Marssenger Kitchenware 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 Marssenger Kitchenware will offset losses from the drop in Marssenger Kitchenware's long position.| China Sports vs. Huatian Hotel Group | China Sports vs. Guangzhou Dongfang Hotel | China Sports vs. Jiahe Foods Industry | China Sports vs. Liuzhou Chemical Industry |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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