Correlation Between China Publishing and China Sports
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By analyzing existing cross correlation between China Publishing Media and China Sports Industry, you can compare the effects of market volatilities on China Publishing 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 China Publishing with a short position of China Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Publishing and China Sports.
Diversification Opportunities for China Publishing and China Sports
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and China is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding China Publishing Media 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 China Publishing 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 China Publishing Media 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 China Publishing i.e., China Publishing and China Sports go up and down completely randomly.
Pair Corralation between China Publishing and China Sports
Assuming the 90 days trading horizon China Publishing Media is expected to generate 2.19 times more return on investment than China Sports. However, China Publishing is 2.19 times more volatile than China Sports Industry. It trades about 0.27 of its potential returns per unit of risk. China Sports Industry is currently generating about 0.02 per unit of risk. If you would invest 694.00 in China Publishing Media on August 26, 2024 and sell it today you would earn a total of 196.00 from holding China Publishing Media or generate 28.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Publishing Media vs. China Sports Industry
Performance |
| Timeline |
| China Publishing Media |
| China Sports Industry |
China Publishing and China Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Publishing and China Sports
The main advantage of trading using opposite China Publishing and China Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Publishing 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.| China Publishing vs. China State Construction | China Publishing vs. Huafa Industrial Co | China Publishing vs. China International Capital | China Publishing vs. Kweichow Moutai 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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