Correlation Between Kuang Chi and Shuhua Sports
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By analyzing existing cross correlation between Kuang Chi Technologies and Shuhua Sports Co, you can compare the effects of market volatilities on Kuang Chi 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 Kuang Chi with a short position of Shuhua Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuang Chi and Shuhua Sports.
Diversification Opportunities for Kuang Chi and Shuhua Sports
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Kuang and Shuhua is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Kuang Chi Technologies and Shuhua Sports Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shuhua Sports and Kuang Chi 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 Kuang Chi Technologies 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 Kuang Chi i.e., Kuang Chi and Shuhua Sports go up and down completely randomly.
Pair Corralation between Kuang Chi and Shuhua Sports
Assuming the 90 days trading horizon Kuang Chi is expected to generate 2.63 times less return on investment than Shuhua Sports. But when comparing it to its historical volatility, Kuang Chi Technologies is 1.09 times less risky than Shuhua Sports. It trades about 0.03 of its potential returns per unit of risk. 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 Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kuang Chi Technologies vs. Shuhua Sports Co
Performance |
| Timeline |
| Kuang Chi Technologies |
| Shuhua Sports |
Kuang Chi and Shuhua Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuang Chi and Shuhua Sports
The main advantage of trading using opposite Kuang Chi and Shuhua Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuang Chi 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.| Kuang Chi vs. Chengtun Mining Group | Kuang Chi vs. Jiangxi Naipu Mining | Kuang Chi vs. Hainan Mining Co | Kuang Chi vs. Fujian Oriental Silver |
| 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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