Correlation Between China Sports and Changjiang Jinggong
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By analyzing existing cross correlation between China Sports Industry and Changjiang Jinggong Steel, you can compare the effects of market volatilities on China Sports and Changjiang Jinggong 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 Changjiang Jinggong. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Sports and Changjiang Jinggong.
Diversification Opportunities for China Sports and Changjiang Jinggong
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Changjiang is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding China Sports Industry and Changjiang Jinggong Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changjiang Jinggong 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 Changjiang Jinggong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changjiang Jinggong Steel has no effect on the direction of China Sports i.e., China Sports and Changjiang Jinggong go up and down completely randomly.
Pair Corralation between China Sports and Changjiang Jinggong
Assuming the 90 days trading horizon China Sports Industry is expected to under-perform the Changjiang Jinggong. In addition to that, China Sports is 1.81 times more volatile than Changjiang Jinggong Steel. It trades about -0.05 of its total potential returns per unit of risk. Changjiang Jinggong Steel is currently generating about -0.08 per unit of volatility. If you would invest 311.00 in Changjiang Jinggong Steel on October 30, 2024 and sell it today you would lose (17.00) from holding Changjiang Jinggong Steel or give up 5.47% 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. Changjiang Jinggong Steel
Performance |
| Timeline |
| China Sports Industry |
| Changjiang Jinggong Steel |
China Sports and Changjiang Jinggong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Sports and Changjiang Jinggong
The main advantage of trading using opposite China Sports and Changjiang Jinggong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Sports position performs unexpectedly, Changjiang Jinggong 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 Changjiang Jinggong will offset losses from the drop in Changjiang Jinggong'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 |
| Changjiang Jinggong vs. Anhui Transport Consulting | Changjiang Jinggong vs. Sichuan Fulin Transportation | Changjiang Jinggong vs. Shuhua Sports Co | Changjiang Jinggong vs. Southern PublishingMedia Co |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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