Correlation Between Thinkingdom Media and Sportsoul
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By analyzing existing cross correlation between Thinkingdom Media Group and Sportsoul Co Ltd, you can compare the effects of market volatilities on Thinkingdom Media 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 Thinkingdom Media with a short position of Sportsoul. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thinkingdom Media and Sportsoul.
Diversification Opportunities for Thinkingdom Media and Sportsoul
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Thinkingdom and Sportsoul is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Thinkingdom Media Group and Sportsoul Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sportsoul and Thinkingdom Media 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 Thinkingdom Media Group 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 Thinkingdom Media i.e., Thinkingdom Media and Sportsoul go up and down completely randomly.
Pair Corralation between Thinkingdom Media and Sportsoul
Assuming the 90 days trading horizon Thinkingdom Media Group is expected to generate 0.83 times more return on investment than Sportsoul. However, Thinkingdom Media Group is 1.2 times less risky than Sportsoul. It trades about 0.08 of its potential returns per unit of risk. Sportsoul Co Ltd is currently generating about 0.04 per unit of risk. If you would invest 1,291 in Thinkingdom Media Group on November 3, 2024 and sell it today you would earn a total of 689.00 from holding Thinkingdom Media Group or generate 53.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thinkingdom Media Group vs. Sportsoul Co Ltd
Performance |
| Timeline |
| Thinkingdom Media |
| Sportsoul |
Thinkingdom Media and Sportsoul Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thinkingdom Media and Sportsoul
The main advantage of trading using opposite Thinkingdom Media and Sportsoul positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thinkingdom Media 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.| Thinkingdom Media vs. Shenzhen Shenbao Industrial | Thinkingdom Media vs. Guangdong Sunwill Precising | Thinkingdom Media vs. Guangzhou Zhujiang Brewery | Thinkingdom Media vs. Ningbo Tip Rubber |
| Sportsoul vs. Jinhe Biotechnology Co | Sportsoul vs. Sharetronic Data Technology | Sportsoul vs. V V Food | Sportsoul vs. Holitech Technology Co |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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