Correlation Between China Sports and Gansu Jiu
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By analyzing existing cross correlation between China Sports Industry and Gansu Jiu Steel, you can compare the effects of market volatilities on China Sports and Gansu Jiu 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 Jiu. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Sports and Gansu Jiu.
Diversification Opportunities for China Sports and Gansu Jiu
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Gansu is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding China Sports Industry and Gansu Jiu Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gansu Jiu Steel 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 Jiu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gansu Jiu Steel has no effect on the direction of China Sports i.e., China Sports and Gansu Jiu go up and down completely randomly.
Pair Corralation between China Sports and Gansu Jiu
Assuming the 90 days trading horizon China Sports Industry is expected to generate 1.14 times more return on investment than Gansu Jiu. However, China Sports is 1.14 times more volatile than Gansu Jiu Steel. It trades about -0.11 of its potential returns per unit of risk. Gansu Jiu Steel is currently generating about -0.18 per unit of risk. If you would invest 814.00 in China Sports Industry on November 3, 2024 and sell it today you would lose (34.00) from holding China Sports Industry or give up 4.18% 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. Gansu Jiu Steel
Performance |
| Timeline |
| China Sports Industry |
| Gansu Jiu Steel |
China Sports and Gansu Jiu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Sports and Gansu Jiu
The main advantage of trading using opposite China Sports and Gansu Jiu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Sports position performs unexpectedly, Gansu Jiu 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 Jiu will offset losses from the drop in Gansu Jiu's long position.| China Sports vs. Xiandai Investment Co | China Sports vs. Dareway Software Co | China Sports vs. Hangzhou Pinming Software | China Sports vs. Inspur Software Co |
| Gansu Jiu vs. Zoje Resources Investment | Gansu Jiu vs. Malion New Materials | Gansu Jiu vs. Guangdong Sunwill Precising | Gansu Jiu vs. Shanghai Material Trading |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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