Correlation Between Xiangpiaopiao Food and China Sports
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By analyzing existing cross correlation between Xiangpiaopiao Food Co and China Sports Industry, you can compare the effects of market volatilities on Xiangpiaopiao Food and China Sports 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 Xiangpiaopiao Food with a short position of China Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiangpiaopiao Food and China Sports.
Diversification Opportunities for Xiangpiaopiao Food and China Sports
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xiangpiaopiao and China is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Xiangpiaopiao Food Co and China Sports Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Sports Industry and Xiangpiaopiao Food 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 Xiangpiaopiao Food Co are associated (or correlated) with China Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Sports Industry has no effect on the direction of Xiangpiaopiao Food i.e., Xiangpiaopiao Food and China Sports go up and down completely randomly.
Pair Corralation between Xiangpiaopiao Food and China Sports
Assuming the 90 days trading horizon Xiangpiaopiao Food Co is expected to generate 1.51 times more return on investment than China Sports. However, Xiangpiaopiao Food is 1.51 times more volatile than China Sports Industry. It trades about 0.14 of its potential returns per unit of risk. China Sports Industry is currently generating about 0.11 per unit of risk. If you would invest 1,180 in Xiangpiaopiao Food Co on September 26, 2024 and sell it today you would earn a total of 455.00 from holding Xiangpiaopiao Food Co or generate 38.56% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Xiangpiaopiao Food Co vs. China Sports Industry
Performance |
Timeline |
Xiangpiaopiao Food |
China Sports Industry |
Xiangpiaopiao Food and China Sports Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Xiangpiaopiao Food and China Sports
The main advantage of trading using opposite Xiangpiaopiao Food and China Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiangpiaopiao Food position performs unexpectedly, China Sports 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 Sports will offset losses from the drop in China Sports' long position.Xiangpiaopiao Food vs. China Sports Industry | Xiangpiaopiao Food vs. Allmed Medical Products | Xiangpiaopiao Food vs. Innovative Medical Management | Xiangpiaopiao Food vs. Touchstone International Medical |
China Sports vs. Shenzhen Kexin Communication | China Sports vs. China World Trade | China Sports vs. Kuang Chi Technologies | China Sports vs. Fujian Newland Computer |
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 CEOs Directory module to screen CEOs from public companies around the world.
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