Correlation Between Hang Xiao and Sportsoul
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By analyzing existing cross correlation between Hang Xiao Steel and Sportsoul Co Ltd, you can compare the effects of market volatilities on Hang Xiao 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 Hang Xiao with a short position of Sportsoul. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hang Xiao and Sportsoul.
Diversification Opportunities for Hang Xiao and Sportsoul
Very poor diversification
The 3 months correlation between Hang and Sportsoul is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Hang Xiao Steel and Sportsoul Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sportsoul and Hang Xiao 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 Hang Xiao 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 Hang Xiao i.e., Hang Xiao and Sportsoul go up and down completely randomly.
Pair Corralation between Hang Xiao and Sportsoul
Assuming the 90 days trading horizon Hang Xiao is expected to generate 119.13 times less return on investment than Sportsoul. But when comparing it to its historical volatility, Hang Xiao Steel is 1.8 times less risky than Sportsoul. It trades about 0.0 of its potential returns per unit of risk. 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 |
Hang Xiao Steel vs. Sportsoul Co Ltd
Performance |
| Timeline |
| Hang Xiao Steel |
| Sportsoul |
Hang Xiao and Sportsoul Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hang Xiao and Sportsoul
The main advantage of trading using opposite Hang Xiao and Sportsoul positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hang Xiao 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.| Hang Xiao vs. Biwin Storage Technology | Hang Xiao vs. PetroChina Co Ltd | Hang Xiao vs. Industrial and Commercial | Hang Xiao vs. China Construction Bank |
| 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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