Correlation Between Long Yuan and China Sports
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By analyzing existing cross correlation between Long Yuan Construction and China Sports Industry, you can compare the effects of market volatilities on Long Yuan 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 Long Yuan with a short position of China Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Long Yuan and China Sports.
Diversification Opportunities for Long Yuan and China Sports
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Long and China is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Long Yuan Construction 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 Long Yuan 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 Long Yuan Construction 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 Long Yuan i.e., Long Yuan and China Sports go up and down completely randomly.
Pair Corralation between Long Yuan and China Sports
Assuming the 90 days trading horizon Long Yuan Construction is expected to generate 1.55 times more return on investment than China Sports. However, Long Yuan is 1.55 times more volatile than China Sports Industry. It trades about 0.14 of its potential returns per unit of risk. China Sports Industry is currently generating about 0.0 per unit of risk. If you would invest 247.00 in Long Yuan Construction on September 3, 2024 and sell it today you would earn a total of 167.00 from holding Long Yuan Construction or generate 67.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Long Yuan Construction vs. China Sports Industry
Performance |
| Timeline |
| Long Yuan Construction |
| China Sports Industry |
Long Yuan and China Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Long Yuan and China Sports
The main advantage of trading using opposite Long Yuan and China Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Long Yuan 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.| Long Yuan vs. Cultural Investment Holdings | Long Yuan vs. Gome Telecom Equipment | Long Yuan vs. Bus Online Co | Long Yuan vs. Holitech Technology Co |
| China Sports vs. Industrial and Commercial | China Sports vs. China Construction Bank | China Sports vs. Bank of China | China Sports vs. Agricultural Bank of |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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