Correlation Between Shuhua Sports and Shenzhen Centralcon
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By analyzing existing cross correlation between Shuhua Sports Co and Shenzhen Centralcon Investment, you can compare the effects of market volatilities on Shuhua Sports and Shenzhen Centralcon 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 Shuhua Sports with a short position of Shenzhen Centralcon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shuhua Sports and Shenzhen Centralcon.
Diversification Opportunities for Shuhua Sports and Shenzhen Centralcon
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Shuhua and Shenzhen is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Shuhua Sports Co and Shenzhen Centralcon Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Centralcon and Shuhua Sports 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 Shuhua Sports Co are associated (or correlated) with Shenzhen Centralcon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Centralcon has no effect on the direction of Shuhua Sports i.e., Shuhua Sports and Shenzhen Centralcon go up and down completely randomly.
Pair Corralation between Shuhua Sports and Shenzhen Centralcon
Assuming the 90 days trading horizon Shuhua Sports Co is expected to generate 1.36 times more return on investment than Shenzhen Centralcon. However, Shuhua Sports is 1.36 times more volatile than Shenzhen Centralcon Investment. It trades about -0.22 of its potential returns per unit of risk. Shenzhen Centralcon Investment is currently generating about -0.46 per unit of risk. If you would invest 950.00 in Shuhua Sports Co on October 16, 2024 and sell it today you would lose (171.00) from holding Shuhua Sports Co or give up 18.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shuhua Sports Co vs. Shenzhen Centralcon Investment
Performance |
| Timeline |
| Shuhua Sports |
| Shenzhen Centralcon |
Shuhua Sports and Shenzhen Centralcon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shuhua Sports and Shenzhen Centralcon
The main advantage of trading using opposite Shuhua Sports and Shenzhen Centralcon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shuhua Sports position performs unexpectedly, Shenzhen Centralcon 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 Shenzhen Centralcon will offset losses from the drop in Shenzhen Centralcon's long position.| Shuhua Sports vs. Fujian Anjoy Foods | Shuhua Sports vs. Ligao Foods CoLtd | Shuhua Sports vs. Jilin Chemical Fibre | Shuhua Sports vs. Jinsanjiang Silicon Material |
| Shenzhen Centralcon vs. Hunan Investment Group | Shenzhen Centralcon vs. Duzhe Publishing Media | Shenzhen Centralcon vs. Shuhua Sports Co | Shenzhen Centralcon vs. Anhui Xinhua Media |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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