Correlation Between Bank of Communications and Shuhua Sports
Specify exactly 2 symbols:
By analyzing existing cross correlation between Bank of Communications and Shuhua Sports Co, you can compare the effects of market volatilities on Bank of Communications 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 Bank of Communications with a short position of Shuhua Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of Communications and Shuhua Sports.
Diversification Opportunities for Bank of Communications and Shuhua Sports
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Bank and Shuhua is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Bank of Communications and Shuhua Sports Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shuhua Sports and Bank of Communications 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 Bank of Communications 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 Bank of Communications i.e., Bank of Communications and Shuhua Sports go up and down completely randomly.
Pair Corralation between Bank of Communications and Shuhua Sports
Assuming the 90 days trading horizon Bank of Communications is expected to generate 67.86 times less return on investment than Shuhua Sports. But when comparing it to its historical volatility, Bank of Communications is 1.57 times less risky than Shuhua Sports. It trades about 0.0 of its potential returns per unit of risk. Shuhua Sports Co is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 761.00 in Shuhua Sports Co on November 3, 2024 and sell it today you would earn a total of 54.00 from holding Shuhua Sports Co or generate 7.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of Communications vs. Shuhua Sports Co
Performance |
| Timeline |
| Bank of Communications |
| Shuhua Sports |
Bank of Communications and Shuhua Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of Communications and Shuhua Sports
The main advantage of trading using opposite Bank of Communications and Shuhua Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of Communications 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.The idea behind Bank of Communications and Shuhua Sports Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Shuhua Sports vs. China Life Insurance | Shuhua Sports vs. National Silicon Industry | Shuhua Sports vs. Shanghai OPM Biosciences | Shuhua Sports vs. Nanhua Bio Medicine |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |