Correlation Between Shenzhen Bingchuan and Shuhua Sports
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By analyzing existing cross correlation between Shenzhen Bingchuan Network and Shuhua Sports Co, you can compare the effects of market volatilities on Shenzhen Bingchuan 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 Shenzhen Bingchuan with a short position of Shuhua Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Bingchuan and Shuhua Sports.
Diversification Opportunities for Shenzhen Bingchuan and Shuhua Sports
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shenzhen and Shuhua is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Bingchuan Network and Shuhua Sports Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shuhua Sports and Shenzhen Bingchuan 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 Shenzhen Bingchuan Network 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 Shenzhen Bingchuan i.e., Shenzhen Bingchuan and Shuhua Sports go up and down completely randomly.
Pair Corralation between Shenzhen Bingchuan and Shuhua Sports
Assuming the 90 days trading horizon Shenzhen Bingchuan Network is expected to generate 1.74 times more return on investment than Shuhua Sports. However, Shenzhen Bingchuan is 1.74 times more volatile than Shuhua Sports Co. It trades about 0.04 of its potential returns per unit of risk. Shuhua Sports Co is currently generating about -0.01 per unit of risk. If you would invest 1,612 in Shenzhen Bingchuan Network on August 26, 2024 and sell it today you would earn a total of 584.00 from holding Shenzhen Bingchuan Network or generate 36.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Bingchuan Network vs. Shuhua Sports Co
Performance |
| Timeline |
| Shenzhen Bingchuan |
| Shuhua Sports |
Shenzhen Bingchuan and Shuhua Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Bingchuan and Shuhua Sports
The main advantage of trading using opposite Shenzhen Bingchuan and Shuhua Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Bingchuan 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.| Shenzhen Bingchuan vs. Ming Yang Smart | Shenzhen Bingchuan vs. 159681 | Shenzhen Bingchuan vs. 159005 | Shenzhen Bingchuan vs. Loctek Ergonomic Technology |
| Shuhua Sports vs. Shenzhen MYS Environmental | Shuhua Sports vs. AVIC Fund Management | Shuhua Sports vs. Shenzhen Bingchuan Network | Shuhua Sports vs. Penghua Shenzhen Energy |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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