Correlation Between Guangzhou Haige and Shuhua Sports
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By analyzing existing cross correlation between Guangzhou Haige Communications and Shuhua Sports Co, you can compare the effects of market volatilities on Guangzhou Haige 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 Guangzhou Haige with a short position of Shuhua Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Haige and Shuhua Sports.
Diversification Opportunities for Guangzhou Haige and Shuhua Sports
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangzhou and Shuhua is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Haige Communications and Shuhua Sports Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shuhua Sports and Guangzhou Haige 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 Guangzhou Haige Communications 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 Guangzhou Haige i.e., Guangzhou Haige and Shuhua Sports go up and down completely randomly.
Pair Corralation between Guangzhou Haige and Shuhua Sports
Assuming the 90 days trading horizon Guangzhou Haige Communications is expected to generate 1.36 times more return on investment than Shuhua Sports. However, Guangzhou Haige is 1.36 times more volatile than Shuhua Sports Co. It trades about 0.21 of its potential returns per unit of risk. Shuhua Sports Co is currently generating about 0.17 per unit of risk. If you would invest 858.00 in Guangzhou Haige Communications on September 2, 2024 and sell it today you would earn a total of 422.00 from holding Guangzhou Haige Communications or generate 49.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Haige Communications vs. Shuhua Sports Co
Performance |
| Timeline |
| Guangzhou Haige Comm |
| Shuhua Sports |
Guangzhou Haige and Shuhua Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Haige and Shuhua Sports
The main advantage of trading using opposite Guangzhou Haige and Shuhua Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Haige 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.| Guangzhou Haige vs. Industrial and Commercial | Guangzhou Haige vs. Kweichow Moutai Co | Guangzhou Haige vs. Agricultural Bank of | Guangzhou Haige vs. China Mobile Limited |
| 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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