Correlation Between Jiangsu Cai and Sportsoul

Can any of the company-specific risk be diversified away by investing in both Jiangsu Cai and Sportsoul at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Jiangsu Cai and Sportsoul into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Jiangsu Cai Qin and Sportsoul Co Ltd, you can compare the effects of market volatilities on Jiangsu Cai and Sportsoul 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 Jiangsu Cai with a short position of Sportsoul. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Cai and Sportsoul.

Diversification Opportunities for Jiangsu Cai and Sportsoul

0.0

Correlation Coefficient

Jiangsu Cai  Sportsoul

Pay attention - limited upside

The 3 months correlation between Jiangsu and Sportsoul is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Cai Qin and Sportsoul Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sportsoul and Jiangsu Cai 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 Jiangsu Cai Qin are associated (or correlated) with Sportsoul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sportsoul has no effect on the direction of Jiangsu Cai i.e., Jiangsu Cai and Sportsoul go up and down completely randomly.

Pair Corralation between Jiangsu Cai and Sportsoul

If you would invest (100.00) in Jiangsu Cai Qin on October 25, 2024 and sell it today you would earn a total of  100.00  from holding Jiangsu Cai Qin or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Jiangsu Cai Qin  vs.  Sportsoul Co Ltd

Jiangsu Cai Qin

Risk-Adjusted Performance

0 of 100

Weak

Over the last 90 days Jiangsu Cai Qin has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Jiangsu Cai is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Sportsoul

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Sportsoul Co Ltd has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Sportsoul is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Jiangsu Cai and Sportsoul

The main advantage of trading using opposite Jiangsu Cai and Sportsoul positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Cai position performs unexpectedly, Sportsoul 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 Sportsoul will offset losses from the drop in Sportsoul's long position.

The idea behind Jiangsu Cai Qin and Sportsoul Co Ltd pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.