Correlation Between China Sports and China International
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Sports Industry and China International Travel, you can compare the effects of market volatilities on China Sports and China International 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 China International. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Sports and China International.
Diversification Opportunities for China Sports and China International
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between China and China is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding China Sports Industry and China International Travel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China International 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 China International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China International has no effect on the direction of China Sports i.e., China Sports and China International go up and down completely randomly.
Pair Corralation between China Sports and China International
Assuming the 90 days trading horizon China Sports Industry is expected to generate 0.95 times more return on investment than China International. However, China Sports Industry is 1.05 times less risky than China International. It trades about 0.0 of its potential returns per unit of risk. China International Travel is currently generating about -0.1 per unit of risk. If you would invest 841.00 in China Sports Industry on October 11, 2024 and sell it today you would lose (83.00) from holding China Sports Industry or give up 9.87% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
China Sports Industry vs. China International Travel
Performance |
Timeline |
China Sports Industry |
China International |
China Sports and China International Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with China Sports and China International
The main advantage of trading using opposite China Sports and China International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Sports position performs unexpectedly, China International 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 International will offset losses from the drop in China International's long position.China Sports vs. Liaoning Dingjide Petrochemical | China Sports vs. Anhui Transport Consulting | China Sports vs. Maoming Petro Chemical Shihua | China Sports vs. Dymatic Chemicals |
China International vs. Shijiazhuang Tonhe Electronics | China International vs. China Sports Industry | China International vs. Dongguan Tarry Electronics | China International vs. Shanghai Yaoji Playing |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
Money Managers Screen money managers from public funds and ETFs managed around the world | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
FinTech Suite Use AI to screen and filter profitable investment opportunities |