Correlation Between Shuhua Sports and Shenzhen Topway
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By analyzing existing cross correlation between Shuhua Sports Co and Shenzhen Topway Video, you can compare the effects of market volatilities on Shuhua Sports and Shenzhen Topway 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 Topway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shuhua Sports and Shenzhen Topway.
Diversification Opportunities for Shuhua Sports and Shenzhen Topway
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Shuhua and Shenzhen is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Shuhua Sports Co and Shenzhen Topway Video in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Topway Video 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 Topway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Topway Video has no effect on the direction of Shuhua Sports i.e., Shuhua Sports and Shenzhen Topway go up and down completely randomly.
Pair Corralation between Shuhua Sports and Shenzhen Topway
Assuming the 90 days trading horizon Shuhua Sports Co is expected to generate 1.45 times more return on investment than Shenzhen Topway. However, Shuhua Sports is 1.45 times more volatile than Shenzhen Topway Video. It trades about 0.04 of its potential returns per unit of risk. Shenzhen Topway Video is currently generating about -0.13 per unit of risk. If you would invest 812.00 in Shuhua Sports Co on October 28, 2024 and sell it today you would earn a total of 12.00 from holding Shuhua Sports Co or generate 1.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shuhua Sports Co vs. Shenzhen Topway Video
Performance |
| Timeline |
| Shuhua Sports |
| Shenzhen Topway Video |
Shuhua Sports and Shenzhen Topway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shuhua Sports and Shenzhen Topway
The main advantage of trading using opposite Shuhua Sports and Shenzhen Topway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shuhua Sports position performs unexpectedly, Shenzhen Topway 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 Topway will offset losses from the drop in Shenzhen Topway's long position.| Shuhua Sports vs. Ming Yang Smart | Shuhua Sports vs. 159681 | Shuhua Sports vs. 159005 | Shuhua Sports vs. Loctek Ergonomic Technology |
| Shenzhen Topway vs. Liaoning Dingjide Petrochemical | Shenzhen Topway vs. Shenzhen Noposion Agrochemicals | Shenzhen Topway vs. HeBei Jinniu Chemical | Shenzhen Topway vs. Tianjin Ruixin Technology |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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