Correlation Between Xinhua Winshare and Shuhua Sports
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By analyzing existing cross correlation between Xinhua Winshare Publishing and Shuhua Sports Co, you can compare the effects of market volatilities on Xinhua Winshare 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 Xinhua Winshare with a short position of Shuhua Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinhua Winshare and Shuhua Sports.
Diversification Opportunities for Xinhua Winshare and Shuhua Sports
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Xinhua and Shuhua is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Xinhua Winshare Publishing and Shuhua Sports Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shuhua Sports and Xinhua Winshare 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 Xinhua Winshare Publishing 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 Xinhua Winshare i.e., Xinhua Winshare and Shuhua Sports go up and down completely randomly.
Pair Corralation between Xinhua Winshare and Shuhua Sports
Assuming the 90 days trading horizon Xinhua Winshare Publishing is expected to under-perform the Shuhua Sports. But the stock apears to be less risky and, when comparing its historical volatility, Xinhua Winshare Publishing is 1.12 times less risky than Shuhua Sports. The stock trades about -0.21 of its potential returns per unit of risk. The Shuhua Sports Co is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 776.00 in Shuhua Sports Co on August 28, 2024 and sell it today you would earn a total of 14.00 from holding Shuhua Sports Co or generate 1.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinhua Winshare Publishing vs. Shuhua Sports Co
Performance |
| Timeline |
| Xinhua Winshare Publ |
| Shuhua Sports |
Xinhua Winshare and Shuhua Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinhua Winshare and Shuhua Sports
The main advantage of trading using opposite Xinhua Winshare and Shuhua Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinhua Winshare 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.| Xinhua Winshare vs. Blue Sail Medical | Xinhua Winshare vs. Kontour Medical Technology | Xinhua Winshare vs. Winner Medical Co | Xinhua Winshare vs. Glodon Software Co |
| Shuhua Sports vs. Tianjin Silvery Dragon | Shuhua Sports vs. Jinhui Mining Co | Shuhua Sports vs. Hainan Mining Co | Shuhua Sports vs. Kunwu Jiuding Investment |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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