Correlation Between Shuhua Sports and Guangdong Fenghua
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By analyzing existing cross correlation between Shuhua Sports Co and Guangdong Fenghua Advanced, you can compare the effects of market volatilities on Shuhua Sports and Guangdong Fenghua 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 Guangdong Fenghua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shuhua Sports and Guangdong Fenghua.
Diversification Opportunities for Shuhua Sports and Guangdong Fenghua
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shuhua and Guangdong is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Shuhua Sports Co and Guangdong Fenghua Advanced in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Fenghua 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 Guangdong Fenghua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Fenghua has no effect on the direction of Shuhua Sports i.e., Shuhua Sports and Guangdong Fenghua go up and down completely randomly.
Pair Corralation between Shuhua Sports and Guangdong Fenghua
Assuming the 90 days trading horizon Shuhua Sports Co is expected to under-perform the Guangdong Fenghua. In addition to that, Shuhua Sports is 1.06 times more volatile than Guangdong Fenghua Advanced. It trades about -0.01 of its total potential returns per unit of risk. Guangdong Fenghua Advanced is currently generating about 0.02 per unit of volatility. If you would invest 1,439 in Guangdong Fenghua Advanced on September 4, 2024 and sell it today you would earn a total of 111.00 from holding Guangdong Fenghua Advanced or generate 7.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shuhua Sports Co vs. Guangdong Fenghua Advanced
Performance |
| Timeline |
| Shuhua Sports |
| Guangdong Fenghua |
Shuhua Sports and Guangdong Fenghua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shuhua Sports and Guangdong Fenghua
The main advantage of trading using opposite Shuhua Sports and Guangdong Fenghua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shuhua Sports position performs unexpectedly, Guangdong Fenghua 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 Guangdong Fenghua will offset losses from the drop in Guangdong Fenghua's long position.| Shuhua Sports vs. BeiGene | Shuhua Sports vs. Kweichow Moutai Co | Shuhua Sports vs. Beijing Roborock Technology | Shuhua Sports vs. G bits Network Technology |
| Guangdong Fenghua vs. Nexchip Semiconductor Corp | Guangdong Fenghua vs. Semiconductor Manufacturing Electronics | Guangdong Fenghua vs. Hangzhou Coco Healthcare | Guangdong Fenghua vs. Everjoy Health Group |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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