Correlation Between Shuhua Sports and Changchun
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By analyzing existing cross correlation between Shuhua Sports Co and Changchun UP Optotech, you can compare the effects of market volatilities on Shuhua Sports and Changchun 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 Changchun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shuhua Sports and Changchun.
Diversification Opportunities for Shuhua Sports and Changchun
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Shuhua and Changchun is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Shuhua Sports Co and Changchun UP Optotech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changchun UP Optotech 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 Changchun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changchun UP Optotech has no effect on the direction of Shuhua Sports i.e., Shuhua Sports and Changchun go up and down completely randomly.
Pair Corralation between Shuhua Sports and Changchun
Assuming the 90 days trading horizon Shuhua Sports Co is expected to generate 1.7 times more return on investment than Changchun. However, Shuhua Sports is 1.7 times more volatile than Changchun UP Optotech. It trades about 0.07 of its potential returns per unit of risk. Changchun UP Optotech is currently generating about -0.29 per unit of risk. If you would invest 850.00 in Shuhua Sports Co on October 10, 2024 and sell it today you would earn a total of 39.00 from holding Shuhua Sports Co or generate 4.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shuhua Sports Co vs. Changchun UP Optotech
Performance |
| Timeline |
| Shuhua Sports |
| Changchun UP Optotech |
Shuhua Sports and Changchun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shuhua Sports and Changchun
The main advantage of trading using opposite Shuhua Sports and Changchun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shuhua Sports position performs unexpectedly, Changchun 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 Changchun will offset losses from the drop in Changchun's long position.| Shuhua Sports vs. Fiberhome Telecommunication Technologies | Shuhua Sports vs. Kuang Chi Technologies | Shuhua Sports vs. China National Software | Shuhua Sports vs. Tongyu Communication |
| Changchun vs. Fiberhome Telecommunication Technologies | Changchun vs. Beijing Bewinner Communications | Changchun vs. Runjian Communication Co | Changchun vs. Cansino Biologics |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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