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
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Chengdu and Shuhua is 0.91. 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 generate 1.32 times more return on investment than Shuhua Sports. However, Chengdu B is 1.32 times more volatile than Shuhua Sports Co. It trades about 0.23 of its potential returns per unit of risk. Shuhua Sports Co is currently generating about 0.3 per unit of risk. If you would invest 448.00 in Chengdu B ray Media on September 4, 2024 and sell it today you would earn a total of 61.00 from holding Chengdu B ray Media or generate 13.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| 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. Aofu Environmental Technology | Chengdu B vs. GreenTech Environmental Co | Chengdu B vs. Cofoe Medical Technology | Chengdu B vs. Cowealth Medical China |
| Shuhua Sports vs. BeiGene | Shuhua Sports vs. Kweichow Moutai Co | Shuhua Sports vs. Beijing Roborock Technology | Shuhua Sports vs. G bits Network Technology |
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..
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