Correlation Between China Sports and Zhuzhou Kibing
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By analyzing existing cross correlation between China Sports Industry and Zhuzhou Kibing Group, you can compare the effects of market volatilities on China Sports and Zhuzhou Kibing 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 Zhuzhou Kibing. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Sports and Zhuzhou Kibing.
Diversification Opportunities for China Sports and Zhuzhou Kibing
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and Zhuzhou is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding China Sports Industry and Zhuzhou Kibing Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhuzhou Kibing Group 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 Zhuzhou Kibing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhuzhou Kibing Group has no effect on the direction of China Sports i.e., China Sports and Zhuzhou Kibing go up and down completely randomly.
Pair Corralation between China Sports and Zhuzhou Kibing
Assuming the 90 days trading horizon China Sports Industry is expected to generate 0.88 times more return on investment than Zhuzhou Kibing. However, China Sports Industry is 1.13 times less risky than Zhuzhou Kibing. It trades about 0.04 of its potential returns per unit of risk. Zhuzhou Kibing Group is currently generating about -0.03 per unit of risk. If you would invest 766.00 in China Sports Industry on September 27, 2024 and sell it today you would earn a total of 76.00 from holding China Sports Industry or generate 9.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Sports Industry vs. Zhuzhou Kibing Group
Performance |
| Timeline |
| China Sports Industry |
| Zhuzhou Kibing Group |
China Sports and Zhuzhou Kibing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Sports and Zhuzhou Kibing
The main advantage of trading using opposite China Sports and Zhuzhou Kibing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Sports position performs unexpectedly, Zhuzhou Kibing 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 Zhuzhou Kibing will offset losses from the drop in Zhuzhou Kibing's long position.| China Sports vs. PetroChina Co Ltd | China Sports vs. China Mobile Limited | China Sports vs. CNOOC Limited | China Sports vs. Ping An Insurance |
| Zhuzhou Kibing vs. Jiangsu Jinling Sports | Zhuzhou Kibing vs. Panda Financial Holding | Zhuzhou Kibing vs. China Sports Industry | Zhuzhou Kibing vs. Caihong Display Devices |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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