Correlation Between Zhongshan Public and Shuhua Sports
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By analyzing existing cross correlation between Zhongshan Public Utilities and Shuhua Sports Co, you can compare the effects of market volatilities on Zhongshan Public and Shuhua 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 Zhongshan Public with a short position of Shuhua Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongshan Public and Shuhua Sports.
Diversification Opportunities for Zhongshan Public and Shuhua Sports
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Zhongshan and Shuhua is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Zhongshan Public Utilities and Shuhua Sports Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shuhua Sports and Zhongshan Public 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 Zhongshan Public Utilities are associated (or correlated) with Shuhua Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shuhua Sports has no effect on the direction of Zhongshan Public i.e., Zhongshan Public and Shuhua Sports go up and down completely randomly.
Pair Corralation between Zhongshan Public and Shuhua Sports
Assuming the 90 days trading horizon Zhongshan Public Utilities is expected to under-perform the Shuhua Sports. But the stock apears to be less risky and, when comparing its historical volatility, Zhongshan Public Utilities is 2.61 times less risky than Shuhua Sports. The stock trades about -0.22 of its potential returns per unit of risk. The Shuhua Sports Co is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 856.00 in Shuhua Sports Co on October 11, 2024 and sell it today you would earn a total of 33.00 from holding Shuhua Sports Co or generate 3.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongshan Public Utilities vs. Shuhua Sports Co
Performance |
| Timeline |
| Zhongshan Public Uti |
| Shuhua Sports |
Zhongshan Public and Shuhua Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongshan Public and Shuhua Sports
The main advantage of trading using opposite Zhongshan Public and Shuhua Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongshan Public position performs unexpectedly, Shuhua 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 Shuhua Sports will offset losses from the drop in Shuhua Sports' long position.| Zhongshan Public vs. Fiberhome Telecommunication Technologies | Zhongshan Public vs. AUPU Home Style | Zhongshan Public vs. Chahua Modern Housewares | Zhongshan Public vs. Anhui Transport Consulting |
| Shuhua Sports vs. Zhongshan Public Utilities | Shuhua Sports vs. Hongrun Construction Group | Shuhua Sports vs. Zhejiang Kingland Pipeline | Shuhua Sports vs. Anhui Huilong Agricultural |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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