Correlation Between Shuhua Sports and Hunan Mendale
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By analyzing existing cross correlation between Shuhua Sports Co and Hunan Mendale Hometextile, you can compare the effects of market volatilities on Shuhua Sports and Hunan Mendale 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 Hunan Mendale. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shuhua Sports and Hunan Mendale.
Diversification Opportunities for Shuhua Sports and Hunan Mendale
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shuhua and Hunan is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Shuhua Sports Co and Hunan Mendale Hometextile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunan Mendale Hometextile 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 Hunan Mendale. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hunan Mendale Hometextile has no effect on the direction of Shuhua Sports i.e., Shuhua Sports and Hunan Mendale go up and down completely randomly.
Pair Corralation between Shuhua Sports and Hunan Mendale
Assuming the 90 days trading horizon Shuhua Sports Co is expected to under-perform the Hunan Mendale. But the stock apears to be less risky and, when comparing its historical volatility, Shuhua Sports Co is 1.67 times less risky than Hunan Mendale. The stock trades about -0.02 of its potential returns per unit of risk. The Hunan Mendale Hometextile is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 320.00 in Hunan Mendale Hometextile on October 30, 2024 and sell it today you would lose (11.00) from holding Hunan Mendale Hometextile or give up 3.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shuhua Sports Co vs. Hunan Mendale Hometextile
Performance |
| Timeline |
| Shuhua Sports |
| Hunan Mendale Hometextile |
Shuhua Sports and Hunan Mendale Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shuhua Sports and Hunan Mendale
The main advantage of trading using opposite Shuhua Sports and Hunan Mendale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shuhua Sports position performs unexpectedly, Hunan Mendale 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 Hunan Mendale will offset losses from the drop in Hunan Mendale'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 |
| Hunan Mendale vs. Zhongshan Public Utilities | Hunan Mendale vs. Tianjin Hi Tech Development | Hunan Mendale vs. Xiamen Jihong Package | Hunan Mendale vs. Fiberhome Telecommunication Technologies |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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