Correlation Between Beijing SPC and Shuhua Sports
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By analyzing existing cross correlation between Beijing SPC Environment and Shuhua Sports Co, you can compare the effects of market volatilities on Beijing SPC 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 Beijing SPC with a short position of Shuhua Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing SPC and Shuhua Sports.
Diversification Opportunities for Beijing SPC and Shuhua Sports
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Beijing and Shuhua is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Beijing SPC Environment and Shuhua Sports Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shuhua Sports and Beijing SPC 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 Beijing SPC Environment 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 Beijing SPC i.e., Beijing SPC and Shuhua Sports go up and down completely randomly.
Pair Corralation between Beijing SPC and Shuhua Sports
Assuming the 90 days trading horizon Beijing SPC Environment is expected to generate 0.92 times more return on investment than Shuhua Sports. However, Beijing SPC Environment is 1.09 times less risky than Shuhua Sports. It trades about -0.01 of its potential returns per unit of risk. Shuhua Sports Co is currently generating about -0.03 per unit of risk. If you would invest 453.00 in Beijing SPC Environment on September 3, 2024 and sell it today you would lose (28.00) from holding Beijing SPC Environment or give up 6.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing SPC Environment vs. Shuhua Sports Co
Performance |
| Timeline |
| Beijing SPC Environment |
| Shuhua Sports |
Beijing SPC and Shuhua Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing SPC and Shuhua Sports
The main advantage of trading using opposite Beijing SPC and Shuhua Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing SPC 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.| Beijing SPC vs. Zhejiang Yayi Metal | Beijing SPC vs. Zijin Mining Group | Beijing SPC vs. Uroica Mining Safety | Beijing SPC vs. Ningbo Thermal Power |
| Shuhua Sports vs. PetroChina Co Ltd | Shuhua Sports vs. China Mobile Limited | Shuhua Sports vs. Industrial and Commercial | Shuhua Sports vs. China Life Insurance |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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