Correlation Between Xinjiang Communications and Shuhua Sports
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By analyzing existing cross correlation between Xinjiang Communications Construction and Shuhua Sports Co, you can compare the effects of market volatilities on Xinjiang Communications 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 Xinjiang Communications with a short position of Shuhua Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Communications and Shuhua Sports.
Diversification Opportunities for Xinjiang Communications and Shuhua Sports
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xinjiang and Shuhua is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Communications Constr and Shuhua Sports Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shuhua Sports and Xinjiang Communications 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 Xinjiang Communications Construction 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 Xinjiang Communications i.e., Xinjiang Communications and Shuhua Sports go up and down completely randomly.
Pair Corralation between Xinjiang Communications and Shuhua Sports
Assuming the 90 days trading horizon Xinjiang Communications Construction is expected to generate 1.43 times more return on investment than Shuhua Sports. However, Xinjiang Communications is 1.43 times more volatile than Shuhua Sports Co. It trades about 0.15 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 964.00 in Xinjiang Communications Construction on September 2, 2024 and sell it today you would earn a total of 316.00 from holding Xinjiang Communications Construction or generate 32.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinjiang Communications Constr vs. Shuhua Sports Co
Performance |
| Timeline |
| Xinjiang Communications |
| Shuhua Sports |
Xinjiang Communications and Shuhua Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Communications and Shuhua Sports
The main advantage of trading using opposite Xinjiang Communications and Shuhua Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Communications 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.| Xinjiang Communications vs. Ming Yang Smart | Xinjiang Communications vs. 159681 | Xinjiang Communications vs. 159005 | Xinjiang Communications vs. Loctek Ergonomic Technology |
| 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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