Correlation Between China Sports and Shandong Publishing
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By analyzing existing cross correlation between China Sports Industry and Shandong Publishing Media, you can compare the effects of market volatilities on China Sports and Shandong Publishing 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 Shandong Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Sports and Shandong Publishing.
Diversification Opportunities for China Sports and Shandong Publishing
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and Shandong is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding China Sports Industry and Shandong Publishing Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Publishing Media 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 Shandong Publishing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Publishing Media has no effect on the direction of China Sports i.e., China Sports and Shandong Publishing go up and down completely randomly.
Pair Corralation between China Sports and Shandong Publishing
Assuming the 90 days trading horizon China Sports is expected to generate 6.63 times less return on investment than Shandong Publishing. But when comparing it to its historical volatility, China Sports Industry is 1.09 times less risky than Shandong Publishing. It trades about 0.01 of its potential returns per unit of risk. Shandong Publishing Media is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 608.00 in Shandong Publishing Media on September 25, 2024 and sell it today you would earn a total of 501.00 from holding Shandong Publishing Media or generate 82.4% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
China Sports Industry vs. Shandong Publishing Media
Performance |
Timeline |
China Sports Industry |
Shandong Publishing Media |
China Sports and Shandong Publishing Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with China Sports and Shandong Publishing
The main advantage of trading using opposite China Sports and Shandong Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Sports position performs unexpectedly, Shandong Publishing 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 Shandong Publishing will offset losses from the drop in Shandong Publishing's long position.China Sports vs. Qingdao Foods Co | China Sports vs. Shandong Sinoglory Health | China Sports vs. Guilin Seamild Foods | China Sports vs. Zhejiang Huatong Meat |
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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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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