Correlation Between China Sports and Suzhou TFC
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By analyzing existing cross correlation between China Sports Industry and Suzhou TFC Optical, you can compare the effects of market volatilities on China Sports and Suzhou TFC 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 Suzhou TFC. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Sports and Suzhou TFC.
Diversification Opportunities for China Sports and Suzhou TFC
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and Suzhou is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding China Sports Industry and Suzhou TFC Optical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou TFC Optical 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 Suzhou TFC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou TFC Optical has no effect on the direction of China Sports i.e., China Sports and Suzhou TFC go up and down completely randomly.
Pair Corralation between China Sports and Suzhou TFC
Assuming the 90 days trading horizon China Sports Industry is expected to generate 0.53 times more return on investment than Suzhou TFC. However, China Sports Industry is 1.9 times less risky than Suzhou TFC. It trades about 0.23 of its potential returns per unit of risk. Suzhou TFC Optical is currently generating about 0.12 per unit of risk. If you would invest 674.00 in China Sports Industry on September 20, 2024 and sell it today you would earn a total of 299.00 from holding China Sports Industry or generate 44.36% 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. Suzhou TFC Optical
Performance |
Timeline |
China Sports Industry |
Suzhou TFC Optical |
China Sports and Suzhou TFC Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with China Sports and Suzhou TFC
The main advantage of trading using opposite China Sports and Suzhou TFC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Sports position performs unexpectedly, Suzhou TFC 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 Suzhou TFC will offset losses from the drop in Suzhou TFC's long position.China Sports vs. China Life Insurance | China Sports vs. Cinda Securities Co | China Sports vs. Piotech Inc A | China Sports vs. Dongxing Sec Co |
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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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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