Correlation Between Changjiang Publishing and Shuhua Sports
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By analyzing existing cross correlation between Changjiang Publishing Media and Shuhua Sports Co, you can compare the effects of market volatilities on Changjiang Publishing 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 Changjiang Publishing with a short position of Shuhua Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changjiang Publishing and Shuhua Sports.
Diversification Opportunities for Changjiang Publishing and Shuhua Sports
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Changjiang and Shuhua is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Changjiang Publishing 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 Changjiang Publishing 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 Changjiang Publishing 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 Changjiang Publishing i.e., Changjiang Publishing and Shuhua Sports go up and down completely randomly.
Pair Corralation between Changjiang Publishing and Shuhua Sports
Assuming the 90 days trading horizon Changjiang Publishing is expected to generate 16.12 times less return on investment than Shuhua Sports. But when comparing it to its historical volatility, Changjiang Publishing Media is 1.1 times less risky than Shuhua Sports. It trades about 0.01 of its potential returns per unit of risk. Shuhua Sports Co is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 683.00 in Shuhua Sports Co on September 2, 2024 and sell it today you would earn a total of 176.00 from holding Shuhua Sports Co or generate 25.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changjiang Publishing Media vs. Shuhua Sports Co
Performance |
| Timeline |
| Changjiang Publishing |
| Shuhua Sports |
Changjiang Publishing and Shuhua Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changjiang Publishing and Shuhua Sports
The main advantage of trading using opposite Changjiang Publishing and Shuhua Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changjiang Publishing 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.| Changjiang Publishing vs. Cambricon Technologies Corp | Changjiang Publishing vs. Loongson Technology Corp | Changjiang Publishing vs. Shenzhen Fortune Trend | Changjiang Publishing vs. Chongqing Road Bridge |
| Shuhua Sports vs. Nanjing Putian Telecommunications | Shuhua Sports vs. Shenzhen Hifuture Electric | Shuhua Sports vs. Tianjin Realty Development | Shuhua Sports vs. Shenyang Huitian Thermal |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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