Correlation Between Shuhua Sports and Kuangda Technology
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shuhua Sports Co and Kuangda Technology Group, you can compare the effects of market volatilities on Shuhua Sports and Kuangda Technology 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 Kuangda Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shuhua Sports and Kuangda Technology.
Diversification Opportunities for Shuhua Sports and Kuangda Technology
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Shuhua and Kuangda is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Shuhua Sports Co and Kuangda Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kuangda Technology 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 Kuangda Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kuangda Technology has no effect on the direction of Shuhua Sports i.e., Shuhua Sports and Kuangda Technology go up and down completely randomly.
Pair Corralation between Shuhua Sports and Kuangda Technology
Assuming the 90 days trading horizon Shuhua Sports Co is expected to generate 2.7 times more return on investment than Kuangda Technology. However, Shuhua Sports is 2.7 times more volatile than Kuangda Technology Group. It trades about 0.2 of its potential returns per unit of risk. Kuangda Technology Group is currently generating about 0.19 per unit of risk. If you would invest 815.00 in Shuhua Sports Co on November 27, 2024 and sell it today you would earn a total of 108.00 from holding Shuhua Sports Co or generate 13.25% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Shuhua Sports Co vs. Kuangda Technology Group
Performance |
Timeline |
Shuhua Sports |
Kuangda Technology |
Shuhua Sports and Kuangda Technology Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shuhua Sports and Kuangda Technology
The main advantage of trading using opposite Shuhua Sports and Kuangda Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shuhua Sports position performs unexpectedly, Kuangda Technology 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 Kuangda Technology will offset losses from the drop in Kuangda Technology's long position.Shuhua Sports vs. Nuode Investment Co | Shuhua Sports vs. Xiamen Insight Investment | Shuhua Sports vs. Great Sun Foods Co | Shuhua Sports vs. Xiwang Foodstuffs Co |
Kuangda Technology vs. BYD Co Ltd | Kuangda Technology vs. China Mobile Limited | Kuangda Technology vs. Agricultural Bank of | Kuangda Technology vs. Industrial and Commercial |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
Stocks Directory Find actively traded stocks across global markets | |
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |