Correlation Between Guangxi Wuzhou and China Sports
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By analyzing existing cross correlation between Guangxi Wuzhou Communications and China Sports Industry, you can compare the effects of market volatilities on Guangxi Wuzhou and China Sports 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 Guangxi Wuzhou with a short position of China Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangxi Wuzhou and China Sports.
Diversification Opportunities for Guangxi Wuzhou and China Sports
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guangxi and China is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Guangxi Wuzhou Communications and China Sports Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Sports Industry and Guangxi Wuzhou 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 Guangxi Wuzhou Communications are associated (or correlated) with China Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Sports Industry has no effect on the direction of Guangxi Wuzhou i.e., Guangxi Wuzhou and China Sports go up and down completely randomly.
Pair Corralation between Guangxi Wuzhou and China Sports
Assuming the 90 days trading horizon Guangxi Wuzhou Communications is expected to generate 1.01 times more return on investment than China Sports. However, Guangxi Wuzhou is 1.01 times more volatile than China Sports Industry. It trades about 0.03 of its potential returns per unit of risk. China Sports Industry is currently generating about -0.01 per unit of risk. If you would invest 349.00 in Guangxi Wuzhou Communications on October 16, 2024 and sell it today you would earn a total of 90.00 from holding Guangxi Wuzhou Communications or generate 25.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangxi Wuzhou Communications vs. China Sports Industry
Performance |
| Timeline |
| Guangxi Wuzhou Commu |
| China Sports Industry |
Guangxi Wuzhou and China Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangxi Wuzhou and China Sports
The main advantage of trading using opposite Guangxi Wuzhou and China Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangxi Wuzhou position performs unexpectedly, China Sports 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 China Sports will offset losses from the drop in China Sports' long position.| Guangxi Wuzhou vs. Anhui Jianghuai Automobile | Guangxi Wuzhou vs. Songz Automobile Air | Guangxi Wuzhou vs. Fiberhome Telecommunication Technologies | Guangxi Wuzhou vs. Huizhou Speed Wireless |
| China Sports vs. Guangzhou Haozhi Industrial | China Sports vs. Runjian Communication Co | China Sports vs. Guangxi Wuzhou Communications | China Sports vs. Guangzhou Seagull Kitchen |
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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