Correlation Between Shuhua Sports and Beijing Kaiwen
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By analyzing existing cross correlation between Shuhua Sports Co and Beijing Kaiwen Education, you can compare the effects of market volatilities on Shuhua Sports and Beijing Kaiwen 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 Beijing Kaiwen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shuhua Sports and Beijing Kaiwen.
Diversification Opportunities for Shuhua Sports and Beijing Kaiwen
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shuhua and Beijing is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Shuhua Sports Co and Beijing Kaiwen Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Kaiwen Education 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 Beijing Kaiwen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Kaiwen Education has no effect on the direction of Shuhua Sports i.e., Shuhua Sports and Beijing Kaiwen go up and down completely randomly.
Pair Corralation between Shuhua Sports and Beijing Kaiwen
Assuming the 90 days trading horizon Shuhua Sports Co is expected to under-perform the Beijing Kaiwen. But the stock apears to be less risky and, when comparing its historical volatility, Shuhua Sports Co is 1.31 times less risky than Beijing Kaiwen. The stock trades about -0.01 of its potential returns per unit of risk. The Beijing Kaiwen Education is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 474.00 in Beijing Kaiwen Education on September 4, 2024 and sell it today you would earn a total of 58.00 from holding Beijing Kaiwen Education or generate 12.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shuhua Sports Co vs. Beijing Kaiwen Education
Performance |
| Timeline |
| Shuhua Sports |
| Beijing Kaiwen Education |
Shuhua Sports and Beijing Kaiwen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shuhua Sports and Beijing Kaiwen
The main advantage of trading using opposite Shuhua Sports and Beijing Kaiwen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shuhua Sports position performs unexpectedly, Beijing Kaiwen 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 Beijing Kaiwen will offset losses from the drop in Beijing Kaiwen's long position.| Shuhua Sports vs. BeiGene | Shuhua Sports vs. Kweichow Moutai Co | Shuhua Sports vs. Beijing Roborock Technology | Shuhua Sports vs. G bits Network Technology |
| Beijing Kaiwen vs. China Life Insurance | Beijing Kaiwen vs. Cinda Securities Co | Beijing Kaiwen vs. Dongxing Sec Co | Beijing Kaiwen vs. Shanghai OPM Biosciences |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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