Correlation Between China Sports and China World
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By analyzing existing cross correlation between China Sports Industry and China World Trade, you can compare the effects of market volatilities on China Sports and China World 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 China World. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Sports and China World.
Diversification Opportunities for China Sports and China World
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between China and China is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding China Sports Industry and China World Trade in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China World Trade 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 China World. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China World Trade has no effect on the direction of China Sports i.e., China Sports and China World go up and down completely randomly.
Pair Corralation between China Sports and China World
Assuming the 90 days trading horizon China Sports Industry is expected to under-perform the China World. In addition to that, China Sports is 1.35 times more volatile than China World Trade. It trades about 0.0 of its total potential returns per unit of risk. China World Trade is currently generating about 0.05 per unit of volatility. If you would invest 1,627 in China World Trade on October 15, 2024 and sell it today you would earn a total of 697.00 from holding China World Trade or generate 42.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Sports Industry vs. China World Trade
Performance |
| Timeline |
| China Sports Industry |
| China World Trade |
China Sports and China World Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Sports and China World
The main advantage of trading using opposite China Sports and China World positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Sports position performs unexpectedly, China World 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 China World will offset losses from the drop in China World'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 |
| China World vs. Qilu Bank Co | China World vs. Financial Street Holdings | China World vs. Harvest Fund Management | China World vs. Huaxia Fund Management |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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