Correlation Between China Sports and Gansu Yasheng
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By analyzing existing cross correlation between China Sports Industry and Gansu Yasheng Industrial, you can compare the effects of market volatilities on China Sports and Gansu Yasheng 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 Gansu Yasheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Sports and Gansu Yasheng.
Diversification Opportunities for China Sports and Gansu Yasheng
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Gansu is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding China Sports Industry and Gansu Yasheng Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gansu Yasheng Industrial 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 Gansu Yasheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gansu Yasheng Industrial has no effect on the direction of China Sports i.e., China Sports and Gansu Yasheng go up and down completely randomly.
Pair Corralation between China Sports and Gansu Yasheng
Assuming the 90 days trading horizon China Sports is expected to generate 1.51 times less return on investment than Gansu Yasheng. But when comparing it to its historical volatility, China Sports Industry is 1.54 times less risky than Gansu Yasheng. It trades about 0.15 of its potential returns per unit of risk. Gansu Yasheng Industrial is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 283.00 in Gansu Yasheng Industrial on September 2, 2024 and sell it today you would earn a total of 22.00 from holding Gansu Yasheng Industrial or generate 7.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Sports Industry vs. Gansu Yasheng Industrial
Performance |
| Timeline |
| China Sports Industry |
| Gansu Yasheng Industrial |
China Sports and Gansu Yasheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Sports and Gansu Yasheng
The main advantage of trading using opposite China Sports and Gansu Yasheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Sports position performs unexpectedly, Gansu Yasheng 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 Gansu Yasheng will offset losses from the drop in Gansu Yasheng's long position.| China Sports vs. Huitong Construction Group | China Sports vs. Shaanxi Construction Machinery | China Sports vs. Long Yuan Construction | China Sports vs. China Life Insurance |
| Gansu Yasheng vs. Hunan TV Broadcast | Gansu Yasheng vs. Zhejiang Yongjin Metal | Gansu Yasheng vs. RoadMain T Co | Gansu Yasheng vs. Hubeiyichang Transportation Group |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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