Correlation Between China Sports and WuXi Xinje
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By analyzing existing cross correlation between China Sports Industry and WuXi Xinje Electric, you can compare the effects of market volatilities on China Sports and WuXi Xinje 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 WuXi Xinje. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Sports and WuXi Xinje.
Diversification Opportunities for China Sports and WuXi Xinje
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and WuXi is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding China Sports Industry and WuXi Xinje Electric in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WuXi Xinje Electric 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 WuXi Xinje. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WuXi Xinje Electric has no effect on the direction of China Sports i.e., China Sports and WuXi Xinje go up and down completely randomly.
Pair Corralation between China Sports and WuXi Xinje
Assuming the 90 days trading horizon China Sports Industry is expected to under-perform the WuXi Xinje. But the stock apears to be less risky and, when comparing its historical volatility, China Sports Industry is 1.14 times less risky than WuXi Xinje. The stock trades about 0.0 of its potential returns per unit of risk. The WuXi Xinje Electric is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 4,849 in WuXi Xinje Electric on October 15, 2024 and sell it today you would lose (591.00) from holding WuXi Xinje Electric or give up 12.19% 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. WuXi Xinje Electric
Performance |
| Timeline |
| China Sports Industry |
| WuXi Xinje Electric |
China Sports and WuXi Xinje Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Sports and WuXi Xinje
The main advantage of trading using opposite China Sports and WuXi Xinje positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Sports position performs unexpectedly, WuXi Xinje 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 WuXi Xinje will offset losses from the drop in WuXi Xinje's long position.| China Sports vs. Guangzhou Haozhi Industrial | China Sports vs. Runjian Communication Co | China Sports vs. Guangxi Wuzhou Communications | China Sports vs. Guangzhou Seagull Kitchen |
| WuXi Xinje vs. Hunan Mendale Hometextile | WuXi Xinje vs. Jinlong Machinery Electronic | WuXi Xinje vs. Qumei Furniture Group | WuXi Xinje vs. Aurora Optoelectronics 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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