Correlation Between Shanghai Action and China Sports
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By analyzing existing cross correlation between Shanghai Action Education and China Sports Industry, you can compare the effects of market volatilities on Shanghai Action 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 Shanghai Action with a short position of China Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Action and China Sports.
Diversification Opportunities for Shanghai Action and China Sports
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shanghai and China is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Action Education 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 Shanghai Action 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 Shanghai Action Education 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 Shanghai Action i.e., Shanghai Action and China Sports go up and down completely randomly.
Pair Corralation between Shanghai Action and China Sports
Assuming the 90 days trading horizon Shanghai Action Education is expected to generate 1.24 times more return on investment than China Sports. However, Shanghai Action is 1.24 times more volatile than China Sports Industry. It trades about 0.03 of its potential returns per unit of risk. China Sports Industry is currently generating about 0.01 per unit of risk. If you would invest 2,678 in Shanghai Action Education on August 30, 2024 and sell it today you would earn a total of 628.00 from holding Shanghai Action Education or generate 23.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Action Education vs. China Sports Industry
Performance |
| Timeline |
| Shanghai Action Education |
| China Sports Industry |
Shanghai Action and China Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Action and China Sports
The main advantage of trading using opposite Shanghai Action and China Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Action 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.| Shanghai Action vs. Agricultural Bank of | Shanghai Action vs. Industrial and Commercial | Shanghai Action vs. Bank of China | Shanghai Action vs. China Construction Bank |
| China Sports vs. Cambricon Technologies Corp | China Sports vs. Empyrean Technology Co | China Sports vs. Kuang Chi Technologies | China Sports vs. Gansu Jiu Steel |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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