Correlation Between Shuhua Sports and Jiangxi Ganfeng
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shuhua Sports Co and Jiangxi Ganfeng Lithium, you can compare the effects of market volatilities on Shuhua Sports and Jiangxi Ganfeng 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 Jiangxi Ganfeng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shuhua Sports and Jiangxi Ganfeng.
Diversification Opportunities for Shuhua Sports and Jiangxi Ganfeng
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Shuhua and Jiangxi is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Shuhua Sports Co and Jiangxi Ganfeng Lithium in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi Ganfeng Lithium 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 Jiangxi Ganfeng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangxi Ganfeng Lithium has no effect on the direction of Shuhua Sports i.e., Shuhua Sports and Jiangxi Ganfeng go up and down completely randomly.
Pair Corralation between Shuhua Sports and Jiangxi Ganfeng
Assuming the 90 days trading horizon Shuhua Sports Co is expected to generate 0.96 times more return on investment than Jiangxi Ganfeng. However, Shuhua Sports Co is 1.04 times less risky than Jiangxi Ganfeng. It trades about -0.01 of its potential returns per unit of risk. Jiangxi Ganfeng Lithium is currently generating about -0.04 per unit of risk. If you would invest 1,066 in Shuhua Sports Co on November 7, 2024 and sell it today you would lose (251.00) from holding Shuhua Sports Co or give up 23.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shuhua Sports Co vs. Jiangxi Ganfeng Lithium
Performance |
| Timeline |
| Shuhua Sports |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
| Jiangxi Ganfeng Lithium |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Shuhua Sports and Jiangxi Ganfeng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shuhua Sports and Jiangxi Ganfeng
The main advantage of trading using opposite Shuhua Sports and Jiangxi Ganfeng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shuhua Sports position performs unexpectedly, Jiangxi Ganfeng 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 Jiangxi Ganfeng will offset losses from the drop in Jiangxi Ganfeng's long position.The idea behind Shuhua Sports Co and Jiangxi Ganfeng Lithium pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |