Correlation Between Shuhua Sports and Allmed Medical
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shuhua Sports Co and Allmed Medical Products, you can compare the effects of market volatilities on Shuhua Sports and Allmed Medical 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 Allmed Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shuhua Sports and Allmed Medical.
Diversification Opportunities for Shuhua Sports and Allmed Medical
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shuhua and Allmed is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Shuhua Sports Co and Allmed Medical Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allmed Medical Products 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 Allmed Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allmed Medical Products has no effect on the direction of Shuhua Sports i.e., Shuhua Sports and Allmed Medical go up and down completely randomly.
Pair Corralation between Shuhua Sports and Allmed Medical
Assuming the 90 days trading horizon Shuhua Sports Co is expected to generate 0.68 times more return on investment than Allmed Medical. However, Shuhua Sports Co is 1.47 times less risky than Allmed Medical. It trades about 0.28 of its potential returns per unit of risk. Allmed Medical Products is currently generating about 0.1 per unit of risk. If you would invest 793.00 in Shuhua Sports Co on September 14, 2024 and sell it today you would earn a total of 108.00 from holding Shuhua Sports Co or generate 13.62% 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. Allmed Medical Products
Performance |
| Timeline |
| Shuhua Sports |
| Allmed Medical Products |
Shuhua Sports and Allmed Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shuhua Sports and Allmed Medical
The main advantage of trading using opposite Shuhua Sports and Allmed Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shuhua Sports position performs unexpectedly, Allmed Medical 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 Allmed Medical will offset losses from the drop in Allmed Medical's long position.| Shuhua Sports vs. Lutian Machinery Co | Shuhua Sports vs. China Longyuan Power | Shuhua Sports vs. PetroChina Co Ltd | Shuhua Sports vs. Bank of China |
| Allmed Medical vs. Industrial and Commercial | Allmed Medical vs. Kweichow Moutai Co | Allmed Medical vs. Agricultural Bank of | Allmed Medical vs. China Mobile Limited |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Stocks Directory Find actively traded stocks across global markets |