Correlation Between HUAQIN TECHNOLOGY and China Sports
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By analyzing existing cross correlation between HUAQIN TECHNOLOGY LTD and China Sports Industry, you can compare the effects of market volatilities on HUAQIN TECHNOLOGY 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 HUAQIN TECHNOLOGY with a short position of China Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUAQIN TECHNOLOGY and China Sports.
Diversification Opportunities for HUAQIN TECHNOLOGY and China Sports
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between HUAQIN and China is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding HUAQIN TECHNOLOGY LTD 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 HUAQIN TECHNOLOGY 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 HUAQIN TECHNOLOGY LTD 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 HUAQIN TECHNOLOGY i.e., HUAQIN TECHNOLOGY and China Sports go up and down completely randomly.
Pair Corralation between HUAQIN TECHNOLOGY and China Sports
Assuming the 90 days trading horizon HUAQIN TECHNOLOGY LTD is expected to generate 0.79 times more return on investment than China Sports. However, HUAQIN TECHNOLOGY LTD is 1.26 times less risky than China Sports. It trades about 0.27 of its potential returns per unit of risk. China Sports Industry is currently generating about 0.06 per unit of risk. If you would invest 5,943 in HUAQIN TECHNOLOGY LTD on September 27, 2024 and sell it today you would earn a total of 958.00 from holding HUAQIN TECHNOLOGY LTD or generate 16.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HUAQIN TECHNOLOGY LTD vs. China Sports Industry
Performance |
| Timeline |
| HUAQIN TECHNOLOGY LTD |
| China Sports Industry |
HUAQIN TECHNOLOGY and China Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUAQIN TECHNOLOGY and China Sports
The main advantage of trading using opposite HUAQIN TECHNOLOGY and China Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUAQIN TECHNOLOGY 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.| HUAQIN TECHNOLOGY vs. Anker Innovations Technology | HUAQIN TECHNOLOGY vs. Sharetronic Data Technology | HUAQIN TECHNOLOGY vs. Hangzhou EZVIZ Network | HUAQIN TECHNOLOGY vs. Sichuan Furong Technology |
| China Sports vs. PetroChina Co Ltd | China Sports vs. China Mobile Limited | China Sports vs. CNOOC Limited | China Sports vs. Ping An Insurance |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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