Correlation Between Qingdao Choho and Shuhua Sports
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By analyzing existing cross correlation between Qingdao Choho Industrial and Shuhua Sports Co, you can compare the effects of market volatilities on Qingdao Choho 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 Qingdao Choho with a short position of Shuhua Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qingdao Choho and Shuhua Sports.
Diversification Opportunities for Qingdao Choho and Shuhua Sports
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Qingdao and Shuhua is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Qingdao Choho 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 Qingdao Choho 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 Qingdao Choho 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 Qingdao Choho i.e., Qingdao Choho and Shuhua Sports go up and down completely randomly.
Pair Corralation between Qingdao Choho and Shuhua Sports
Assuming the 90 days trading horizon Qingdao Choho Industrial is expected to generate 0.51 times more return on investment than Shuhua Sports. However, Qingdao Choho Industrial is 1.95 times less risky than Shuhua Sports. It trades about -0.16 of its potential returns per unit of risk. Shuhua Sports Co is currently generating about -0.13 per unit of risk. If you would invest 2,912 in Qingdao Choho Industrial on October 17, 2024 and sell it today you would lose (221.00) from holding Qingdao Choho Industrial or give up 7.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qingdao Choho Industrial vs. Shuhua Sports Co
Performance |
| Timeline |
| Qingdao Choho Industrial |
| Shuhua Sports |
Qingdao Choho and Shuhua Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qingdao Choho and Shuhua Sports
The main advantage of trading using opposite Qingdao Choho and Shuhua Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qingdao Choho 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.| Qingdao Choho vs. Jiangsu Jinling Sports | Qingdao Choho vs. Yunnan Jianzhijia Health Chain | Qingdao Choho vs. Sportsoul Co Ltd | Qingdao Choho vs. Heilongjiang Transport Development |
| Shuhua Sports vs. Tibet Huayu Mining | Shuhua Sports vs. Anhui Jinhe Industrial | Shuhua Sports vs. Bank of Suzhou | Shuhua Sports vs. Qingdao Choho Industrial |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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