Correlation Between China Sports and Namchow Food
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By analyzing existing cross correlation between China Sports Industry and Namchow Food Group, you can compare the effects of market volatilities on China Sports and Namchow Food 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 Namchow Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Sports and Namchow Food.
Diversification Opportunities for China Sports and Namchow Food
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Namchow is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding China Sports Industry and Namchow Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Namchow Food Group 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 Namchow Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Namchow Food Group has no effect on the direction of China Sports i.e., China Sports and Namchow Food go up and down completely randomly.
Pair Corralation between China Sports and Namchow Food
Assuming the 90 days trading horizon China Sports Industry is expected to under-perform the Namchow Food. But the stock apears to be less risky and, when comparing its historical volatility, China Sports Industry is 1.69 times less risky than Namchow Food. The stock trades about -0.11 of its potential returns per unit of risk. The Namchow Food Group is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,718 in Namchow Food Group on November 3, 2024 and sell it today you would earn a total of 14.00 from holding Namchow Food Group or generate 0.81% 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. Namchow Food Group
Performance |
| Timeline |
| China Sports Industry |
| Namchow Food Group |
China Sports and Namchow Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Sports and Namchow Food
The main advantage of trading using opposite China Sports and Namchow Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Sports position performs unexpectedly, Namchow Food 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 Namchow Food will offset losses from the drop in Namchow Food's long position.| China Sports vs. Shanghai Action Education | China Sports vs. Southern PublishingMedia Co | China Sports vs. Peoples Insurance of | China Sports vs. China Life Insurance |
| Namchow Food vs. Bus Online Co | Namchow Food vs. Holitech Technology Co | Namchow Food vs. Gome Telecom Equipment | Namchow Food vs. Cultural Investment Holdings |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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