Correlation Between GUOMAI Culture and Shuhua Sports
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By analyzing existing cross correlation between GUOMAI Culture Media and Shuhua Sports Co, you can compare the effects of market volatilities on GUOMAI Culture 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 GUOMAI Culture with a short position of Shuhua Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of GUOMAI Culture and Shuhua Sports.
Diversification Opportunities for GUOMAI Culture and Shuhua Sports
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between GUOMAI and Shuhua is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding GUOMAI Culture Media and Shuhua Sports Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shuhua Sports and GUOMAI Culture 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 GUOMAI Culture Media 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 GUOMAI Culture i.e., GUOMAI Culture and Shuhua Sports go up and down completely randomly.
Pair Corralation between GUOMAI Culture and Shuhua Sports
Assuming the 90 days trading horizon GUOMAI Culture Media is expected to generate 1.83 times more return on investment than Shuhua Sports. However, GUOMAI Culture is 1.83 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 0.0 per unit of risk. If you would invest 2,010 in GUOMAI Culture Media on October 29, 2024 and sell it today you would earn a total of 618.00 from holding GUOMAI Culture Media or generate 30.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GUOMAI Culture Media vs. Shuhua Sports Co
Performance |
| Timeline |
| GUOMAI Culture Media |
| Shuhua Sports |
GUOMAI Culture and Shuhua Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GUOMAI Culture and Shuhua Sports
The main advantage of trading using opposite GUOMAI Culture and Shuhua Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GUOMAI Culture 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.| GUOMAI Culture vs. Beijing YanDong MicroElectronic | GUOMAI Culture vs. Guangzhou Zhujiang Brewery | GUOMAI Culture vs. Shantou Wanshun Package | GUOMAI Culture vs. Fuzhou Rockchip Electronics |
| Shuhua Sports vs. Zhongfu Information | Shuhua Sports vs. Tianshan Aluminum Group | Shuhua Sports vs. Wonders Information | Shuhua Sports vs. Shanghai Yanpu Metal |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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