Correlation Between China Sports and Kunwu Jiuding
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By analyzing existing cross correlation between China Sports Industry and Kunwu Jiuding Investment, you can compare the effects of market volatilities on China Sports and Kunwu Jiuding 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 Kunwu Jiuding. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Sports and Kunwu Jiuding.
Diversification Opportunities for China Sports and Kunwu Jiuding
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and Kunwu is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding China Sports Industry and Kunwu Jiuding Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kunwu Jiuding Investment 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 Kunwu Jiuding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kunwu Jiuding Investment has no effect on the direction of China Sports i.e., China Sports and Kunwu Jiuding go up and down completely randomly.
Pair Corralation between China Sports and Kunwu Jiuding
Assuming the 90 days trading horizon China Sports Industry is expected to generate 0.86 times more return on investment than Kunwu Jiuding. However, China Sports Industry is 1.16 times less risky than Kunwu Jiuding. It trades about -0.05 of its potential returns per unit of risk. Kunwu Jiuding Investment is currently generating about -0.16 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Sports Industry vs. Kunwu Jiuding Investment
Performance |
| Timeline |
| China Sports Industry |
| Kunwu Jiuding Investment |
China Sports and Kunwu Jiuding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Sports and Kunwu Jiuding
The main advantage of trading using opposite China Sports and Kunwu Jiuding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Sports position performs unexpectedly, Kunwu Jiuding 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 Kunwu Jiuding will offset losses from the drop in Kunwu Jiuding'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 |
| Kunwu Jiuding vs. Thinkingdom Media Group | Kunwu Jiuding vs. Heilongjiang Publishing Media | Kunwu Jiuding vs. Guilin Seamild Foods | Kunwu Jiuding vs. Threes Company Media |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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