Correlation Between Shuhua Sports and Fujian Newland
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By analyzing existing cross correlation between Shuhua Sports Co and Fujian Newland Computer, you can compare the effects of market volatilities on Shuhua Sports and Fujian Newland 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 Fujian Newland. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shuhua Sports and Fujian Newland.
Diversification Opportunities for Shuhua Sports and Fujian Newland
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shuhua and Fujian is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Shuhua Sports Co and Fujian Newland Computer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Newland Computer 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 Fujian Newland. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Newland Computer has no effect on the direction of Shuhua Sports i.e., Shuhua Sports and Fujian Newland go up and down completely randomly.
Pair Corralation between Shuhua Sports and Fujian Newland
Assuming the 90 days trading horizon Shuhua Sports is expected to generate 1.0 times less return on investment than Fujian Newland. But when comparing it to its historical volatility, Shuhua Sports Co is 1.03 times less risky than Fujian Newland. It trades about 0.03 of its potential returns per unit of risk. Fujian Newland Computer is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,803 in Fujian Newland Computer on October 22, 2024 and sell it today you would earn a total of 184.00 from holding Fujian Newland Computer or generate 10.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shuhua Sports Co vs. Fujian Newland Computer
Performance |
| Timeline |
| Shuhua Sports |
| Fujian Newland Computer |
Shuhua Sports and Fujian Newland Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shuhua Sports and Fujian Newland
The main advantage of trading using opposite Shuhua Sports and Fujian Newland positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shuhua Sports position performs unexpectedly, Fujian Newland 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 Fujian Newland will offset losses from the drop in Fujian Newland's long position.| Shuhua Sports vs. Financial Street Holdings | Shuhua Sports vs. Xiangyang Automobile Bearing | Shuhua Sports vs. Quectel Wireless Solutions | Shuhua Sports vs. Bank of Communications |
| Fujian Newland vs. Xilong Chemical Co | Fujian Newland vs. HeBei Jinniu Chemical | Fujian Newland vs. Liuzhou Chemical Industry | Fujian Newland vs. Qingdao Choho Industrial |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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