Correlation Between Sichuan Yahua and Shuhua Sports
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By analyzing existing cross correlation between Sichuan Yahua Industrial and Shuhua Sports Co, you can compare the effects of market volatilities on Sichuan Yahua 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 Sichuan Yahua with a short position of Shuhua Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sichuan Yahua and Shuhua Sports.
Diversification Opportunities for Sichuan Yahua and Shuhua Sports
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sichuan and Shuhua is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Sichuan Yahua 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 Sichuan Yahua 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 Sichuan Yahua 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 Sichuan Yahua i.e., Sichuan Yahua and Shuhua Sports go up and down completely randomly.
Pair Corralation between Sichuan Yahua and Shuhua Sports
Assuming the 90 days trading horizon Sichuan Yahua is expected to generate 1.13 times less return on investment than Shuhua Sports. In addition to that, Sichuan Yahua is 1.49 times more volatile than Shuhua Sports Co. It trades about 0.2 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 | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sichuan Yahua Industrial vs. Shuhua Sports Co
Performance |
| Timeline |
| Sichuan Yahua Industrial |
| Shuhua Sports |
Sichuan Yahua and Shuhua Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sichuan Yahua and Shuhua Sports
The main advantage of trading using opposite Sichuan Yahua and Shuhua Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sichuan Yahua 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.| Sichuan Yahua vs. Zijin Mining Group | Sichuan Yahua vs. Wanhua Chemical Group | Sichuan Yahua vs. Baoshan Iron Steel | Sichuan Yahua vs. Shandong Gold Mining |
| 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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