Correlation Between Hygon Information and China Sports
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By analyzing existing cross correlation between Hygon Information Technology and China Sports Industry, you can compare the effects of market volatilities on Hygon Information 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 Hygon Information with a short position of China Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hygon Information and China Sports.
Diversification Opportunities for Hygon Information and China Sports
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hygon and China is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Hygon Information Technology 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 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 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 Hygon Information i.e., Hygon Information and China Sports go up and down completely randomly.
Pair Corralation between Hygon Information and China Sports
Assuming the 90 days trading horizon Hygon Information Technology is expected to generate 1.3 times more return on investment than China Sports. However, Hygon Information is 1.3 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 -0.05 per unit of risk. If you would invest 12,581 in Hygon Information Technology on October 30, 2024 and sell it today you would earn a total of 219.00 from holding Hygon Information Technology or generate 1.74% 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. China Sports Industry
Performance |
| Timeline |
| Hygon Information |
| China Sports Industry |
Hygon Information and China Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hygon Information and China Sports
The main advantage of trading using opposite Hygon Information and China Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hygon Information 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.| Hygon Information vs. Agricultural Bank of | Hygon Information vs. Industrial and Commercial | Hygon Information vs. Bank of China | Hygon Information vs. China Construction Bank |
| China Sports vs. Huatian Hotel Group | China Sports vs. Guangzhou Dongfang Hotel | China Sports vs. Jiahe Foods Industry | China Sports vs. Liuzhou Chemical Industry |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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