Correlation Between Shuhua Sports and Tianshui Huatian
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By analyzing existing cross correlation between Shuhua Sports Co and Tianshui Huatian Technology, you can compare the effects of market volatilities on Shuhua Sports and Tianshui Huatian 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 Tianshui Huatian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shuhua Sports and Tianshui Huatian.
Diversification Opportunities for Shuhua Sports and Tianshui Huatian
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shuhua and Tianshui is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Shuhua Sports Co and Tianshui Huatian Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianshui Huatian Tec 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 Tianshui Huatian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianshui Huatian Tec has no effect on the direction of Shuhua Sports i.e., Shuhua Sports and Tianshui Huatian go up and down completely randomly.
Pair Corralation between Shuhua Sports and Tianshui Huatian
Assuming the 90 days trading horizon Shuhua Sports Co is expected to under-perform the Tianshui Huatian. But the stock apears to be less risky and, when comparing its historical volatility, Shuhua Sports Co is 1.03 times less risky than Tianshui Huatian. The stock trades about -0.01 of its potential returns per unit of risk. The Tianshui Huatian Technology is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 920.00 in Tianshui Huatian Technology on September 1, 2024 and sell it today you would earn a total of 264.00 from holding Tianshui Huatian Technology or generate 28.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shuhua Sports Co vs. Tianshui Huatian Technology
Performance |
| Timeline |
| Shuhua Sports |
| Tianshui Huatian Tec |
Shuhua Sports and Tianshui Huatian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shuhua Sports and Tianshui Huatian
The main advantage of trading using opposite Shuhua Sports and Tianshui Huatian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shuhua Sports position performs unexpectedly, Tianshui Huatian 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 Tianshui Huatian will offset losses from the drop in Tianshui Huatian's long position.| Shuhua Sports vs. Industrial and Commercial | Shuhua Sports vs. Agricultural Bank of | Shuhua Sports vs. China Construction Bank | Shuhua Sports vs. Bank of China |
| Tianshui Huatian vs. Industrial and Commercial | Tianshui Huatian vs. Kweichow Moutai Co | Tianshui Huatian vs. Agricultural Bank of | Tianshui Huatian vs. China Mobile Limited |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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