Correlation Between Shuhua Sports and Shengda Mining
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By analyzing existing cross correlation between Shuhua Sports Co and Shengda Mining Co, you can compare the effects of market volatilities on Shuhua Sports and Shengda Mining 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 Shengda Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shuhua Sports and Shengda Mining.
Diversification Opportunities for Shuhua Sports and Shengda Mining
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shuhua and Shengda is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Shuhua Sports Co and Shengda Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shengda Mining 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 Shengda Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shengda Mining has no effect on the direction of Shuhua Sports i.e., Shuhua Sports and Shengda Mining go up and down completely randomly.
Pair Corralation between Shuhua Sports and Shengda Mining
Assuming the 90 days trading horizon Shuhua Sports is expected to generate 2.42 times less return on investment than Shengda Mining. In addition to that, Shuhua Sports is 1.08 times more volatile than Shengda Mining Co. It trades about 0.03 of its total potential returns per unit of risk. Shengda Mining Co is currently generating about 0.09 per unit of volatility. If you would invest 1,096 in Shengda Mining Co on November 3, 2024 and sell it today you would earn a total of 288.00 from holding Shengda Mining Co or generate 26.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.16% |
| Values | Daily Returns |
Shuhua Sports Co vs. Shengda Mining Co
Performance |
| Timeline |
| Shuhua Sports |
| Shengda Mining |
Shuhua Sports and Shengda Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shuhua Sports and Shengda Mining
The main advantage of trading using opposite Shuhua Sports and Shengda Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shuhua Sports position performs unexpectedly, Shengda Mining 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 Shengda Mining will offset losses from the drop in Shengda Mining's long position.| Shuhua Sports vs. China Life Insurance | Shuhua Sports vs. National Silicon Industry | Shuhua Sports vs. Shanghai OPM Biosciences | Shuhua Sports vs. Nanhua Bio Medicine |
| Shengda Mining vs. Fuda Alloy Materials | Shengda Mining vs. Lander Sports Development | Shengda Mining vs. Shuhua Sports Co | Shengda Mining vs. China Sports Industry |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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