Correlation Between Shuhua Sports and Bank of Suzhou
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By analyzing existing cross correlation between Shuhua Sports Co and Bank of Suzhou, you can compare the effects of market volatilities on Shuhua Sports and Bank of Suzhou 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 Bank of Suzhou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shuhua Sports and Bank of Suzhou.
Diversification Opportunities for Shuhua Sports and Bank of Suzhou
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shuhua and Bank is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Shuhua Sports Co and Bank of Suzhou in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of Suzhou 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 Bank of Suzhou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of Suzhou has no effect on the direction of Shuhua Sports i.e., Shuhua Sports and Bank of Suzhou go up and down completely randomly.
Pair Corralation between Shuhua Sports and Bank of Suzhou
Assuming the 90 days trading horizon Shuhua Sports Co is expected to under-perform the Bank of Suzhou. In addition to that, Shuhua Sports is 1.86 times more volatile than Bank of Suzhou. It trades about 0.0 of its total potential returns per unit of risk. Bank of Suzhou is currently generating about 0.03 per unit of volatility. If you would invest 684.00 in Bank of Suzhou on October 16, 2024 and sell it today you would earn a total of 107.00 from holding Bank of Suzhou or generate 15.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shuhua Sports Co vs. Bank of Suzhou
Performance |
| Timeline |
| Shuhua Sports |
| Bank of Suzhou |
Shuhua Sports and Bank of Suzhou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shuhua Sports and Bank of Suzhou
The main advantage of trading using opposite Shuhua Sports and Bank of Suzhou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shuhua Sports position performs unexpectedly, Bank of Suzhou 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 Bank of Suzhou will offset losses from the drop in Bank of Suzhou's long position.| Shuhua Sports vs. Eyebright Medical Technology | Shuhua Sports vs. China Minmetals Rare | Shuhua Sports vs. Keeson Technology Corp | Shuhua Sports vs. Rising Nonferrous Metals |
| Bank of Suzhou vs. Beijing Kaiwen Education | Bank of Suzhou vs. China Publishing Media | Bank of Suzhou vs. Heilongjiang Publishing Media | Bank of Suzhou vs. Tangel Publishing |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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