Correlation Between China Sports and GRG Banking
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By analyzing existing cross correlation between China Sports Industry and GRG Banking Equipment, you can compare the effects of market volatilities on China Sports and GRG Banking 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 China Sports with a short position of GRG Banking. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Sports and GRG Banking.
Diversification Opportunities for China Sports and GRG Banking
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and GRG is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding China Sports Industry and GRG Banking Equipment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRG Banking Equipment and China Sports 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 China Sports Industry are associated (or correlated) with GRG Banking. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GRG Banking Equipment has no effect on the direction of China Sports i.e., China Sports and GRG Banking go up and down completely randomly.
Pair Corralation between China Sports and GRG Banking
Assuming the 90 days trading horizon China Sports is expected to generate 2.97 times less return on investment than GRG Banking. In addition to that, China Sports is 1.01 times more volatile than GRG Banking Equipment. It trades about 0.01 of its total potential returns per unit of risk. GRG Banking Equipment is currently generating about 0.03 per unit of volatility. If you would invest 987.00 in GRG Banking Equipment on September 26, 2024 and sell it today you would earn a total of 236.00 from holding GRG Banking Equipment or generate 23.91% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
China Sports Industry vs. GRG Banking Equipment
Performance |
Timeline |
China Sports Industry |
GRG Banking Equipment |
China Sports and GRG Banking Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with China Sports and GRG Banking
The main advantage of trading using opposite China Sports and GRG Banking positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Sports position performs unexpectedly, GRG Banking 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 GRG Banking will offset losses from the drop in GRG Banking's long position.China Sports vs. Shenzhen Kexin Communication | China Sports vs. China World Trade | China Sports vs. Kuang Chi Technologies | China Sports vs. Fujian Newland Computer |
GRG Banking vs. Guangzhou KingTeller Technology | GRG Banking vs. Sportsoul Co Ltd | GRG Banking vs. China Sports Industry | GRG Banking vs. Olympic Circuit Technology |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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