Correlation Between Yunnan Xiyi and Shuhua Sports
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By analyzing existing cross correlation between Yunnan Xiyi Industrial and Shuhua Sports Co, you can compare the effects of market volatilities on Yunnan Xiyi 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 Yunnan Xiyi with a short position of Shuhua Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yunnan Xiyi and Shuhua Sports.
Diversification Opportunities for Yunnan Xiyi and Shuhua Sports
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Yunnan and Shuhua is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Yunnan Xiyi Industrial and Shuhua Sports Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shuhua Sports and Yunnan Xiyi 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 Yunnan Xiyi Industrial 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 Yunnan Xiyi i.e., Yunnan Xiyi and Shuhua Sports go up and down completely randomly.
Pair Corralation between Yunnan Xiyi and Shuhua Sports
Assuming the 90 days trading horizon Yunnan Xiyi is expected to generate 2.38 times less return on investment than Shuhua Sports. In addition to that, Yunnan Xiyi is 1.58 times more volatile than Shuhua Sports Co. It trades about 0.09 of its total potential returns per unit of risk. Shuhua Sports Co is currently generating about 0.35 per unit of volatility. If you would invest 740.00 in Shuhua Sports Co on September 2, 2024 and sell it today you would earn a total of 119.00 from holding Shuhua Sports Co or generate 16.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yunnan Xiyi Industrial vs. Shuhua Sports Co
Performance |
| Timeline |
| Yunnan Xiyi Industrial |
| Shuhua Sports |
Yunnan Xiyi and Shuhua Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yunnan Xiyi and Shuhua Sports
The main advantage of trading using opposite Yunnan Xiyi and Shuhua Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yunnan Xiyi 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.| Yunnan Xiyi vs. China Publishing Media | Yunnan Xiyi vs. Sichuan Hebang Biotechnology | Yunnan Xiyi vs. Zhejiang Publishing Media | Yunnan Xiyi vs. Jiangsu GDK Biotechnology |
| Shuhua Sports vs. Nanjing Putian Telecommunications | Shuhua Sports vs. Shenzhen Hifuture Electric | Shuhua Sports vs. Tianjin Realty Development | Shuhua Sports vs. Shenyang Huitian Thermal |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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