Correlation Between Fujian Wanchen and Shuhua Sports
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By analyzing existing cross correlation between Fujian Wanchen Biotechnology and Shuhua Sports Co, you can compare the effects of market volatilities on Fujian Wanchen 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 Fujian Wanchen with a short position of Shuhua Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Wanchen and Shuhua Sports.
Diversification Opportunities for Fujian Wanchen and Shuhua Sports
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Fujian and Shuhua is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Wanchen Biotechnology and Shuhua Sports Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shuhua Sports and Fujian Wanchen 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 Fujian Wanchen Biotechnology 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 Fujian Wanchen i.e., Fujian Wanchen and Shuhua Sports go up and down completely randomly.
Pair Corralation between Fujian Wanchen and Shuhua Sports
Assuming the 90 days trading horizon Fujian Wanchen Biotechnology is expected to generate 1.12 times more return on investment than Shuhua Sports. However, Fujian Wanchen is 1.12 times more volatile than Shuhua Sports Co. It trades about 0.41 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 7,921 in Fujian Wanchen Biotechnology on November 3, 2024 and sell it today you would earn a total of 2,359 from holding Fujian Wanchen Biotechnology or generate 29.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Wanchen Biotechnology vs. Shuhua Sports Co
Performance |
| Timeline |
| Fujian Wanchen Biote |
| Shuhua Sports |
Fujian Wanchen and Shuhua Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Wanchen and Shuhua Sports
The main advantage of trading using opposite Fujian Wanchen and Shuhua Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Wanchen 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.| Fujian Wanchen vs. Bus Online Co | Fujian Wanchen vs. Holitech Technology Co | Fujian Wanchen vs. Gome Telecom Equipment | Fujian Wanchen vs. Cultural Investment Holdings |
| 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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