Correlation Between Fushun Special and Sportsoul
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By analyzing existing cross correlation between Fushun Special Steel and Sportsoul Co Ltd, you can compare the effects of market volatilities on Fushun Special and Sportsoul 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 Fushun Special with a short position of Sportsoul. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fushun Special and Sportsoul.
Diversification Opportunities for Fushun Special and Sportsoul
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Fushun and Sportsoul is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Fushun Special Steel and Sportsoul Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sportsoul and Fushun Special 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 Fushun Special Steel are associated (or correlated) with Sportsoul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sportsoul has no effect on the direction of Fushun Special i.e., Fushun Special and Sportsoul go up and down completely randomly.
Pair Corralation between Fushun Special and Sportsoul
Assuming the 90 days trading horizon Fushun Special Steel is expected to under-perform the Sportsoul. But the stock apears to be less risky and, when comparing its historical volatility, Fushun Special Steel is 1.56 times less risky than Sportsoul. The stock trades about -0.11 of its potential returns per unit of risk. The Sportsoul Co Ltd is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 1,213 in Sportsoul Co Ltd on August 30, 2024 and sell it today you would earn a total of 197.00 from holding Sportsoul Co Ltd or generate 16.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fushun Special Steel vs. Sportsoul Co Ltd
Performance |
| Timeline |
| Fushun Special Steel |
| Sportsoul |
Fushun Special and Sportsoul Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fushun Special and Sportsoul
The main advantage of trading using opposite Fushun Special and Sportsoul positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fushun Special position performs unexpectedly, Sportsoul 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 Sportsoul will offset losses from the drop in Sportsoul's long position.| Fushun Special vs. Wanhua Chemical Group | Fushun Special vs. Baoshan Iron Steel | Fushun Special vs. Rongsheng Petrochemical Co | Fushun Special vs. Hoshine Silicon Ind |
| Sportsoul vs. Cambricon Technologies Corp | Sportsoul vs. Loongson Technology Corp | Sportsoul vs. Shenzhen Fortune Trend | Sportsoul vs. Chongqing Road Bridge |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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