Correlation Between China Sports and HUAQIN TECHNOLOGY
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Sports Industry and HUAQIN TECHNOLOGY LTD, you can compare the effects of market volatilities on China Sports and HUAQIN TECHNOLOGY 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 HUAQIN TECHNOLOGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Sports and HUAQIN TECHNOLOGY.
Diversification Opportunities for China Sports and HUAQIN TECHNOLOGY
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and HUAQIN is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding China Sports Industry and HUAQIN TECHNOLOGY LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUAQIN TECHNOLOGY LTD 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 HUAQIN TECHNOLOGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HUAQIN TECHNOLOGY LTD has no effect on the direction of China Sports i.e., China Sports and HUAQIN TECHNOLOGY go up and down completely randomly.
Pair Corralation between China Sports and HUAQIN TECHNOLOGY
Assuming the 90 days trading horizon China Sports is expected to generate 3.47 times less return on investment than HUAQIN TECHNOLOGY. In addition to that, China Sports is 1.26 times more volatile than HUAQIN TECHNOLOGY LTD. It trades about 0.06 of its total potential returns per unit of risk. HUAQIN TECHNOLOGY LTD is currently generating about 0.27 per unit of volatility. If you would invest 5,943 in HUAQIN TECHNOLOGY LTD on September 27, 2024 and sell it today you would earn a total of 958.00 from holding HUAQIN TECHNOLOGY LTD or generate 16.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Sports Industry vs. HUAQIN TECHNOLOGY LTD
Performance |
| Timeline |
| China Sports Industry |
| HUAQIN TECHNOLOGY LTD |
China Sports and HUAQIN TECHNOLOGY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Sports and HUAQIN TECHNOLOGY
The main advantage of trading using opposite China Sports and HUAQIN TECHNOLOGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Sports position performs unexpectedly, HUAQIN TECHNOLOGY 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 HUAQIN TECHNOLOGY will offset losses from the drop in HUAQIN TECHNOLOGY'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 |
| HUAQIN TECHNOLOGY vs. Anker Innovations Technology | HUAQIN TECHNOLOGY vs. Sharetronic Data Technology | HUAQIN TECHNOLOGY vs. Hangzhou EZVIZ Network | HUAQIN TECHNOLOGY vs. Sichuan Furong Technology |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |