Correlation Between China Sports and Kuang Chi
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By analyzing existing cross correlation between China Sports Industry and Kuang Chi Technologies, you can compare the effects of market volatilities on China Sports and Kuang Chi 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 Kuang Chi. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Sports and Kuang Chi.
Diversification Opportunities for China Sports and Kuang Chi
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and Kuang is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding China Sports Industry and Kuang Chi Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kuang Chi Technologies 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 Kuang Chi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kuang Chi Technologies has no effect on the direction of China Sports i.e., China Sports and Kuang Chi go up and down completely randomly.
Pair Corralation between China Sports and Kuang Chi
Assuming the 90 days trading horizon China Sports Industry is expected to under-perform the Kuang Chi. But the stock apears to be less risky and, when comparing its historical volatility, China Sports Industry is 1.71 times less risky than Kuang Chi. The stock trades about -0.04 of its potential returns per unit of risk. The Kuang Chi Technologies is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 2,726 in Kuang Chi Technologies on October 8, 2024 and sell it today you would earn a total of 1,320 from holding Kuang Chi Technologies or generate 48.42% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
China Sports Industry vs. Kuang Chi Technologies
Performance |
Timeline |
China Sports Industry |
Kuang Chi Technologies |
China Sports and Kuang Chi Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with China Sports and Kuang Chi
The main advantage of trading using opposite China Sports and Kuang Chi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Sports position performs unexpectedly, Kuang Chi 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 Kuang Chi will offset losses from the drop in Kuang Chi's long position.China Sports vs. Inspur Software Co | China Sports vs. DO Home Collection | China Sports vs. UE Furniture Co | China Sports vs. Mengtian Home Group |
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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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