Correlation Between Chengdu B and Shuhua Sports
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By analyzing existing cross correlation between Chengdu B ray Media and Shuhua Sports Co, you can compare the effects of market volatilities on Chengdu B 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 Chengdu B with a short position of Shuhua Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu B and Shuhua Sports.
Diversification Opportunities for Chengdu B and Shuhua Sports
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Chengdu and Shuhua is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu B ray 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 Chengdu B 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 Chengdu B ray 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 Chengdu B i.e., Chengdu B and Shuhua Sports go up and down completely randomly.
Pair Corralation between Chengdu B and Shuhua Sports
Assuming the 90 days trading horizon Chengdu B ray Media is expected to under-perform the Shuhua Sports. But the stock apears to be less risky and, when comparing its historical volatility, Chengdu B ray Media is 1.28 times less risky than Shuhua Sports. The stock trades about -0.19 of its potential returns per unit of risk. The Shuhua Sports Co is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 802.00 in Shuhua Sports Co on October 24, 2024 and sell it today you would earn a total of 42.00 from holding Shuhua Sports Co or generate 5.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengdu B ray Media vs. Shuhua Sports Co
Performance |
| Timeline |
| Chengdu B ray |
| Shuhua Sports |
Chengdu B and Shuhua Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu B and Shuhua Sports
The main advantage of trading using opposite Chengdu B and Shuhua Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu B 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.| Chengdu B vs. Longxing Chemical Stock | Chengdu B vs. Beijing Mainstreets Investment | Chengdu B vs. Shenzhen Centralcon Investment | Chengdu B vs. Jiangsu Yueda Investment |
| Shuhua Sports vs. Jilin Chemical Fibre | Shuhua Sports vs. Jinsanjiang Silicon Material | Shuhua Sports vs. Tongyu Communication | Shuhua Sports vs. Wuxi Chemical Equipment |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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