Correlation Between China Sports and Anhui Transport
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By analyzing existing cross correlation between China Sports Industry and Anhui Transport Consulting, you can compare the effects of market volatilities on China Sports and Anhui Transport 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 Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Sports and Anhui Transport.
Diversification Opportunities for China Sports and Anhui Transport
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and Anhui is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding China Sports Industry and Anhui Transport Consulting in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Transport Cons 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 Transport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Transport Cons has no effect on the direction of China Sports i.e., China Sports and Anhui Transport go up and down completely randomly.
Pair Corralation between China Sports and Anhui Transport
Assuming the 90 days trading horizon China Sports Industry is expected to generate 1.98 times more return on investment than Anhui Transport. However, China Sports is 1.98 times more volatile than Anhui Transport Consulting. It trades about -0.21 of its potential returns per unit of risk. Anhui Transport Consulting is currently generating about -0.43 per unit of risk. If you would invest 891.00 in China Sports Industry on October 12, 2024 and sell it today you would lose (133.00) from holding China Sports Industry or give up 14.93% 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 Transport Consulting
Performance |
| Timeline |
| China Sports Industry |
| Anhui Transport Cons |
China Sports and Anhui Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Sports and Anhui Transport
The main advantage of trading using opposite China Sports and Anhui Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Sports position performs unexpectedly, Anhui Transport 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 Transport will offset losses from the drop in Anhui Transport's long position.| China Sports vs. Sanbo Hospital Management | China Sports vs. Goodwill E Health | China Sports vs. Heren Health Co | China Sports vs. Sinofibers Technology Co |
| Anhui Transport vs. Emdoor Information Co | Anhui Transport vs. Do Fluoride Chemicals Co | Anhui Transport vs. Bus Online Co | Anhui Transport vs. Sharetronic Data 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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