Correlation Between Shuhua Sports and Success Electronics
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By analyzing existing cross correlation between Shuhua Sports Co and Success Electronics, you can compare the effects of market volatilities on Shuhua Sports and Success Electronics 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 Success Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shuhua Sports and Success Electronics.
Diversification Opportunities for Shuhua Sports and Success Electronics
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shuhua and Success is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Shuhua Sports Co and Success Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Success Electronics 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 Success Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Success Electronics has no effect on the direction of Shuhua Sports i.e., Shuhua Sports and Success Electronics go up and down completely randomly.
Pair Corralation between Shuhua Sports and Success Electronics
Assuming the 90 days trading horizon Shuhua Sports Co is expected to generate 0.88 times more return on investment than Success Electronics. However, Shuhua Sports Co is 1.14 times less risky than Success Electronics. It trades about 0.0 of its potential returns per unit of risk. Success Electronics is currently generating about -0.05 per unit of risk. If you would invest 1,033 in Shuhua Sports Co on October 27, 2024 and sell it today you would lose (209.00) from holding Shuhua Sports Co or give up 20.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shuhua Sports Co vs. Success Electronics
Performance |
| Timeline |
| Shuhua Sports |
| Success Electronics |
Shuhua Sports and Success Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shuhua Sports and Success Electronics
The main advantage of trading using opposite Shuhua Sports and Success Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shuhua Sports position performs unexpectedly, Success Electronics 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 Success Electronics will offset losses from the drop in Success Electronics' long position.| Shuhua Sports vs. Ming Yang Smart | Shuhua Sports vs. 159681 | Shuhua Sports vs. 159005 | Shuhua Sports vs. Loctek Ergonomic Technology |
| Success Electronics vs. Guangzhou Zhujiang Brewery | Success Electronics vs. Chongqing Brewery Co | Success Electronics vs. Harbin Hatou Investment | Success Electronics vs. Beijing Yanjing Brewery |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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