Correlation Between Zhejiang Kingland and Shuhua Sports
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By analyzing existing cross correlation between Zhejiang Kingland Pipeline and Shuhua Sports Co, you can compare the effects of market volatilities on Zhejiang Kingland 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 Zhejiang Kingland with a short position of Shuhua Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Kingland and Shuhua Sports.
Diversification Opportunities for Zhejiang Kingland and Shuhua Sports
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Zhejiang and Shuhua is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Kingland Pipeline and Shuhua Sports Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shuhua Sports and Zhejiang Kingland 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 Zhejiang Kingland Pipeline 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 Zhejiang Kingland i.e., Zhejiang Kingland and Shuhua Sports go up and down completely randomly.
Pair Corralation between Zhejiang Kingland and Shuhua Sports
Assuming the 90 days trading horizon Zhejiang Kingland Pipeline is expected to under-perform the Shuhua Sports. But the stock apears to be less risky and, when comparing its historical volatility, Zhejiang Kingland Pipeline is 2.69 times less risky than Shuhua Sports. The stock trades about -0.41 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 Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Kingland Pipeline vs. Shuhua Sports Co
Performance |
| Timeline |
| Zhejiang Kingland |
| Shuhua Sports |
Zhejiang Kingland and Shuhua Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Kingland and Shuhua Sports
The main advantage of trading using opposite Zhejiang Kingland and Shuhua Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Kingland 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.| Zhejiang Kingland vs. Guangzhou Seagull Kitchen | Zhejiang Kingland vs. Dymatic Chemicals | Zhejiang Kingland vs. Huaxia Fund Management | Zhejiang Kingland vs. AVIC Fund Management |
| 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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