Correlation Between China Sports and Anhui Xinhua
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By analyzing existing cross correlation between China Sports Industry and Anhui Xinhua Media, you can compare the effects of market volatilities on China Sports and Anhui Xinhua 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 Anhui Xinhua. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Sports and Anhui Xinhua.
Diversification Opportunities for China Sports and Anhui Xinhua
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and Anhui is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding China Sports Industry and Anhui Xinhua Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Xinhua Media 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 Anhui Xinhua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Xinhua Media has no effect on the direction of China Sports i.e., China Sports and Anhui Xinhua go up and down completely randomly.
Pair Corralation between China Sports and Anhui Xinhua
Assuming the 90 days trading horizon China Sports Industry is expected to under-perform the Anhui Xinhua. But the stock apears to be less risky and, when comparing its historical volatility, China Sports Industry is 1.09 times less risky than Anhui Xinhua. The stock trades about -0.03 of its potential returns per unit of risk. The Anhui Xinhua Media is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 698.00 in Anhui Xinhua Media on October 14, 2024 and sell it today you would lose (22.00) from holding Anhui Xinhua Media or give up 3.15% 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. Anhui Xinhua Media
Performance |
| Timeline |
| China Sports Industry |
| Anhui Xinhua Media |
China Sports and Anhui Xinhua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Sports and Anhui Xinhua
The main advantage of trading using opposite China Sports and Anhui Xinhua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Sports position performs unexpectedly, Anhui Xinhua 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 Anhui Xinhua will offset losses from the drop in Anhui Xinhua's long position.| China Sports vs. Dongguan Tarry Electronics | China Sports vs. Sihui Fuji Electronics | China Sports vs. Beijing YanDong MicroElectronic | China Sports vs. MayAir Technology Co |
| Anhui Xinhua vs. China Sports Industry | Anhui Xinhua vs. Lontium Semiconductor Corp | Anhui Xinhua vs. Union Semiconductor Co | Anhui Xinhua vs. Suzhou Douson Drilling |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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