Correlation Between Guangdong Liantai and China Sports
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By analyzing existing cross correlation between Guangdong Liantai Environmental and China Sports Industry, you can compare the effects of market volatilities on Guangdong Liantai 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 Guangdong Liantai with a short position of China Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Liantai and China Sports.
Diversification Opportunities for Guangdong Liantai and China Sports
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangdong and China is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Liantai Environmenta 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 Guangdong Liantai 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 Guangdong Liantai Environmental 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 Guangdong Liantai i.e., Guangdong Liantai and China Sports go up and down completely randomly.
Pair Corralation between Guangdong Liantai and China Sports
Assuming the 90 days trading horizon Guangdong Liantai Environmental is expected to generate 0.72 times more return on investment than China Sports. However, Guangdong Liantai Environmental is 1.4 times less risky than China Sports. It trades about -0.04 of its potential returns per unit of risk. China Sports Industry is currently generating about -0.07 per unit of risk. If you would invest 405.00 in Guangdong Liantai Environmental on November 30, 2024 and sell it today you would lose (10.00) from holding Guangdong Liantai Environmental or give up 2.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Liantai Environmenta vs. China Sports Industry
Performance |
| Timeline |
| Guangdong Liantai |
| China Sports Industry |
Guangdong Liantai and China Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Liantai and China Sports
The main advantage of trading using opposite Guangdong Liantai and China Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Liantai 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.| Guangdong Liantai vs. Queclink Wireless Solutions | Guangdong Liantai vs. VeriSilicon Microelectronics Shanghai | Guangdong Liantai vs. Mengtian Home Group | Guangdong Liantai vs. Ningbo Bohui Chemical |
| China Sports vs. Guangdong Transtek Medical | China Sports vs. Zhonghang Electronic Measuring | China Sports vs. Xian International Medical | China Sports vs. Touchstone International Medical |
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 Stocks Directory module to find actively traded stocks across global markets.
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