Correlation Between China Sports and Guotai Epoint
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Sports Industry and Guotai Epoint Software, you can compare the effects of market volatilities on China Sports and Guotai Epoint 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 Guotai Epoint. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Sports and Guotai Epoint.
Diversification Opportunities for China Sports and Guotai Epoint
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between China and Guotai is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding China Sports Industry and Guotai Epoint Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guotai Epoint Software 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 Guotai Epoint. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guotai Epoint Software has no effect on the direction of China Sports i.e., China Sports and Guotai Epoint go up and down completely randomly.
Pair Corralation between China Sports and Guotai Epoint
Assuming the 90 days trading horizon China Sports Industry is expected to under-perform the Guotai Epoint. But the stock apears to be less risky and, when comparing its historical volatility, China Sports Industry is 1.29 times less risky than Guotai Epoint. The stock trades about -0.24 of its potential returns per unit of risk. The Guotai Epoint Software is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 2,982 in Guotai Epoint Software on October 28, 2024 and sell it today you would lose (11.00) from holding Guotai Epoint Software or give up 0.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Sports Industry vs. Guotai Epoint Software
Performance |
| Timeline |
| China Sports Industry |
| Guotai Epoint Software |
China Sports and Guotai Epoint Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Sports and Guotai Epoint
The main advantage of trading using opposite China Sports and Guotai Epoint positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Sports position performs unexpectedly, Guotai Epoint 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 Guotai Epoint will offset losses from the drop in Guotai Epoint's long position.| China Sports vs. Agricultural Bank of | China Sports vs. Industrial and Commercial | China Sports vs. Bank of China | China Sports vs. China Construction Bank |
| Guotai Epoint vs. Aluminum Corp of | Guotai Epoint vs. Wuhan Yangtze Communication | Guotai Epoint vs. Lootom Telcovideo Network | Guotai Epoint vs. Eastern Communications 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |