Correlation Between Shuhua Sports and Sichuan Fulin
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By analyzing existing cross correlation between Shuhua Sports Co and Sichuan Fulin Transportation, you can compare the effects of market volatilities on Shuhua Sports and Sichuan Fulin 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 Sichuan Fulin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shuhua Sports and Sichuan Fulin.
Diversification Opportunities for Shuhua Sports and Sichuan Fulin
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shuhua and Sichuan is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Shuhua Sports Co and Sichuan Fulin Transportation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Fulin Transp 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 Sichuan Fulin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Fulin Transp has no effect on the direction of Shuhua Sports i.e., Shuhua Sports and Sichuan Fulin go up and down completely randomly.
Pair Corralation between Shuhua Sports and Sichuan Fulin
Assuming the 90 days trading horizon Shuhua Sports Co is expected to under-perform the Sichuan Fulin. In addition to that, Shuhua Sports is 1.22 times more volatile than Sichuan Fulin Transportation. It trades about -0.02 of its total potential returns per unit of risk. Sichuan Fulin Transportation is currently generating about 0.06 per unit of volatility. If you would invest 698.00 in Sichuan Fulin Transportation on October 30, 2024 and sell it today you would earn a total of 34.00 from holding Sichuan Fulin Transportation or generate 4.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shuhua Sports Co vs. Sichuan Fulin Transportation
Performance |
| Timeline |
| Shuhua Sports |
| Sichuan Fulin Transp |
Shuhua Sports and Sichuan Fulin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shuhua Sports and Sichuan Fulin
The main advantage of trading using opposite Shuhua Sports and Sichuan Fulin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shuhua Sports position performs unexpectedly, Sichuan Fulin 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 Sichuan Fulin will offset losses from the drop in Sichuan Fulin's long position.| Shuhua Sports vs. Cabio Biotech Wuhan | Shuhua Sports vs. Beijing YanDong MicroElectronic | Shuhua Sports vs. Techshine Electronics Co | Shuhua Sports vs. Nantong Haixing Electronics |
| Sichuan Fulin vs. Jiangsu Financial Leasing | Sichuan Fulin vs. Tinavi Medical Technologies | Sichuan Fulin vs. Double Medical Technology | Sichuan Fulin vs. Touchstone International Medical |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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