Correlation Between Hygon Information and Sportsoul
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By analyzing existing cross correlation between Hygon Information Technology and Sportsoul Co Ltd, you can compare the effects of market volatilities on Hygon Information 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 Hygon Information with a short position of Sportsoul. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hygon Information and Sportsoul.
Diversification Opportunities for Hygon Information and Sportsoul
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hygon and Sportsoul is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Hygon Information Technology and Sportsoul Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sportsoul and Hygon Information 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 Hygon Information Technology 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 Hygon Information i.e., Hygon Information and Sportsoul go up and down completely randomly.
Pair Corralation between Hygon Information and Sportsoul
Assuming the 90 days trading horizon Hygon Information Technology is expected to generate 1.08 times more return on investment than Sportsoul. However, Hygon Information is 1.08 times more volatile than Sportsoul Co Ltd. It trades about 0.08 of its potential returns per unit of risk. Sportsoul Co Ltd is currently generating about 0.0 per unit of risk. If you would invest 4,411 in Hygon Information Technology on October 16, 2024 and sell it today you would earn a total of 9,929 from holding Hygon Information Technology or generate 225.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hygon Information Technology vs. Sportsoul Co Ltd
Performance |
| Timeline |
| Hygon Information |
| Sportsoul |
Hygon Information and Sportsoul Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hygon Information and Sportsoul
The main advantage of trading using opposite Hygon Information and Sportsoul positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hygon Information 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.| Hygon Information vs. Songz Automobile Air | Hygon Information vs. Rising Nonferrous Metals | Hygon Information vs. Anhui Jianghuai Automobile | Hygon Information vs. Telling Telecommunication Holding |
| Sportsoul vs. Jinsanjiang Silicon Material | Sportsoul vs. Anji Foodstuff Co | Sportsoul vs. Dosilicon Co | Sportsoul vs. Hengli Petrochemical 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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