Correlation Between Shenyang Huitian and Sportsoul
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By analyzing existing cross correlation between Shenyang Huitian Thermal and Sportsoul Co Ltd, you can compare the effects of market volatilities on Shenyang Huitian 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 Shenyang Huitian with a short position of Sportsoul. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenyang Huitian and Sportsoul.
Diversification Opportunities for Shenyang Huitian and Sportsoul
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenyang and Sportsoul is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Shenyang Huitian Thermal and Sportsoul Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sportsoul and Shenyang Huitian 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 Shenyang Huitian Thermal 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 Shenyang Huitian i.e., Shenyang Huitian and Sportsoul go up and down completely randomly.
Pair Corralation between Shenyang Huitian and Sportsoul
Assuming the 90 days trading horizon Shenyang Huitian Thermal is expected to under-perform the Sportsoul. But the stock apears to be less risky and, when comparing its historical volatility, Shenyang Huitian Thermal is 1.4 times less risky than Sportsoul. The stock trades about -0.02 of its potential returns per unit of risk. The Sportsoul Co Ltd is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 1,234 in Sportsoul Co Ltd on September 3, 2024 and sell it today you would earn a total of 237.00 from holding Sportsoul Co Ltd or generate 19.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenyang Huitian Thermal vs. Sportsoul Co Ltd
Performance |
| Timeline |
| Shenyang Huitian Thermal |
| Sportsoul |
Shenyang Huitian and Sportsoul Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenyang Huitian and Sportsoul
The main advantage of trading using opposite Shenyang Huitian and Sportsoul positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenyang Huitian 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.| Shenyang Huitian vs. Industrial and Commercial | Shenyang Huitian vs. Agricultural Bank of | Shenyang Huitian vs. China Construction Bank | Shenyang Huitian vs. Bank of China |
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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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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