Correlation Between China Sports and Guangdong Liantai
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By analyzing existing cross correlation between China Sports Industry and Guangdong Liantai Environmental, you can compare the effects of market volatilities on China Sports and Guangdong Liantai 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 Guangdong Liantai. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Sports and Guangdong Liantai.
Diversification Opportunities for China Sports and Guangdong Liantai
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Guangdong is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding China Sports Industry and Guangdong Liantai Environmenta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Liantai 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 Guangdong Liantai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Liantai has no effect on the direction of China Sports i.e., China Sports and Guangdong Liantai go up and down completely randomly.
Pair Corralation between China Sports and Guangdong Liantai
Assuming the 90 days trading horizon China Sports Industry is expected to under-perform the Guangdong Liantai. But the stock apears to be less risky and, when comparing its historical volatility, China Sports Industry is 1.09 times less risky than Guangdong Liantai. The stock trades about -0.01 of its potential returns per unit of risk. The Guangdong Liantai Environmental is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 419.00 in Guangdong Liantai Environmental on September 3, 2024 and sell it today you would earn a total of 11.00 from holding Guangdong Liantai Environmental or generate 2.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Sports Industry vs. Guangdong Liantai Environmenta
Performance |
| Timeline |
| China Sports Industry |
| Guangdong Liantai |
China Sports and Guangdong Liantai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Sports and Guangdong Liantai
The main advantage of trading using opposite China Sports and Guangdong Liantai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Sports position performs unexpectedly, Guangdong Liantai 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 Guangdong Liantai will offset losses from the drop in Guangdong Liantai's long position.| China Sports vs. Industrial and Commercial | China Sports vs. China Construction Bank | China Sports vs. Bank of China | China Sports vs. Agricultural Bank of |
| Guangdong Liantai vs. Touchstone International Medical | Guangdong Liantai vs. Gansu Jiu Steel | Guangdong Liantai vs. Hubei Xingfa Chemicals | Guangdong Liantai vs. Fujian Nanwang Environment |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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