Correlation Between Chengdu B-ray and Sportsoul
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By analyzing existing cross correlation between Chengdu B ray Media and Sportsoul Co Ltd, you can compare the effects of market volatilities on Chengdu B-ray 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 Chengdu B-ray with a short position of Sportsoul. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu B-ray and Sportsoul.
Diversification Opportunities for Chengdu B-ray and Sportsoul
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Chengdu and Sportsoul is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu B ray Media and Sportsoul Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sportsoul and Chengdu B-ray 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 Chengdu B ray Media 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 Chengdu B-ray i.e., Chengdu B-ray and Sportsoul go up and down completely randomly.
Pair Corralation between Chengdu B-ray and Sportsoul
Assuming the 90 days trading horizon Chengdu B ray Media is expected to generate 1.38 times more return on investment than Sportsoul. However, Chengdu B-ray is 1.38 times more volatile than Sportsoul Co Ltd. It trades about 0.23 of its potential returns per unit of risk. Sportsoul Co Ltd is currently generating about 0.29 per unit of risk. If you would invest 467.00 in Chengdu B ray Media on November 29, 2024 and sell it today you would earn a total of 36.00 from holding Chengdu B ray Media or generate 7.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengdu B ray Media vs. Sportsoul Co Ltd
Performance |
| Timeline |
| Chengdu B ray |
| Sportsoul |
Chengdu B-ray and Sportsoul Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu B-ray and Sportsoul
The main advantage of trading using opposite Chengdu B-ray and Sportsoul positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu B-ray 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.| Chengdu B-ray vs. Qijing Machinery | Chengdu B-ray vs. Zhejiang Yinlun Machinery | Chengdu B-ray vs. Beijing Kingsoft Office | Chengdu B-ray vs. Nanxing Furniture Machinery |
| Sportsoul vs. Wasu Media Holding | Sportsoul vs. Fujian Longzhou Transportation | Sportsoul vs. TVZone Media Co | Sportsoul vs. Hainan Haiqi Transportation |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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