Correlation Between Zhongjing Food and Shuhua Sports
Specify exactly 2 symbols:
By analyzing existing cross correlation between Zhongjing Food Co and Shuhua Sports Co, you can compare the effects of market volatilities on Zhongjing Food 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 Zhongjing Food with a short position of Shuhua Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongjing Food and Shuhua Sports.
Diversification Opportunities for Zhongjing Food and Shuhua Sports
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Zhongjing and Shuhua is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Zhongjing Food Co and Shuhua Sports Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shuhua Sports and Zhongjing Food 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 Zhongjing Food Co 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 Zhongjing Food i.e., Zhongjing Food and Shuhua Sports go up and down completely randomly.
Pair Corralation between Zhongjing Food and Shuhua Sports
Assuming the 90 days trading horizon Zhongjing Food Co is expected to generate 0.54 times more return on investment than Shuhua Sports. However, Zhongjing Food Co is 1.84 times less risky than Shuhua Sports. It trades about -0.09 of its potential returns per unit of risk. Shuhua Sports Co is currently generating about -0.09 per unit of risk. If you would invest 3,104 in Zhongjing Food Co on November 3, 2024 and sell it today you would lose (95.00) from holding Zhongjing Food Co or give up 3.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongjing Food Co vs. Shuhua Sports Co
Performance |
| Timeline |
| Zhongjing Food |
| Shuhua Sports |
Zhongjing Food and Shuhua Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongjing Food and Shuhua Sports
The main advantage of trading using opposite Zhongjing Food and Shuhua Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongjing Food 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.| Zhongjing Food vs. Duzhe Publishing Media | Zhongjing Food vs. Shanghai Action Education | Zhongjing Food vs. COL Digital Publishing | Zhongjing Food vs. Jiangsu Phoenix Publishing |
| Shuhua Sports vs. Shenzhen Bioeasy Biotechnology | Shuhua Sports vs. Shanghai Rightongene Biotechnology | Shuhua Sports vs. Guangdong Marubi Biotechnology | Shuhua Sports vs. Anhui Huaheng Biotechnology |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |