Correlation Between Xizi Clean and Shuhua Sports
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By analyzing existing cross correlation between Xizi Clean Energy and Shuhua Sports Co, you can compare the effects of market volatilities on Xizi Clean 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 Xizi Clean with a short position of Shuhua Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xizi Clean and Shuhua Sports.
Diversification Opportunities for Xizi Clean and Shuhua Sports
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Xizi and Shuhua is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Xizi Clean Energy and Shuhua Sports Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shuhua Sports and Xizi Clean 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 Xizi Clean Energy 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 Xizi Clean i.e., Xizi Clean and Shuhua Sports go up and down completely randomly.
Pair Corralation between Xizi Clean and Shuhua Sports
Assuming the 90 days trading horizon Xizi Clean Energy is expected to generate 1.11 times more return on investment than Shuhua Sports. However, Xizi Clean is 1.11 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 -0.09 per unit of risk. If you would invest 1,079 in Xizi Clean Energy on November 3, 2024 and sell it today you would earn a total of 146.00 from holding Xizi Clean Energy or generate 13.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xizi Clean Energy vs. Shuhua Sports Co
Performance |
| Timeline |
| Xizi Clean Energy |
| Shuhua Sports |
Xizi Clean and Shuhua Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xizi Clean and Shuhua Sports
The main advantage of trading using opposite Xizi Clean and Shuhua Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xizi Clean 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.| Xizi Clean vs. Agricultural Bank of | Xizi Clean vs. Industrial and Commercial | Xizi Clean vs. Bank of China | Xizi Clean vs. PetroChina Co Ltd |
| Shuhua Sports vs. Shenzhen Bioeasy Biotechnology | Shuhua Sports vs. Shanghai Rightongene Biotechnology | Shuhua Sports vs. Guangdong Marubi Biotechnology | Shuhua Sports vs. Anhui Huaheng Biotechnology |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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