Correlation Between Shuhua Sports and Jiangsu Xinning
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By analyzing existing cross correlation between Shuhua Sports Co and Jiangsu Xinning Modern, you can compare the effects of market volatilities on Shuhua Sports and Jiangsu Xinning 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 Jiangsu Xinning. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shuhua Sports and Jiangsu Xinning.
Diversification Opportunities for Shuhua Sports and Jiangsu Xinning
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Shuhua and Jiangsu is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Shuhua Sports Co and Jiangsu Xinning Modern in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Xinning Modern 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 Jiangsu Xinning. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Xinning Modern has no effect on the direction of Shuhua Sports i.e., Shuhua Sports and Jiangsu Xinning go up and down completely randomly.
Pair Corralation between Shuhua Sports and Jiangsu Xinning
Assuming the 90 days trading horizon Shuhua Sports is expected to generate 6.65 times less return on investment than Jiangsu Xinning. But when comparing it to its historical volatility, Shuhua Sports Co is 1.75 times less risky than Jiangsu Xinning. It trades about 0.03 of its potential returns per unit of risk. Jiangsu Xinning Modern is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 179.00 in Jiangsu Xinning Modern on November 3, 2024 and sell it today you would earn a total of 152.00 from holding Jiangsu Xinning Modern or generate 84.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shuhua Sports Co vs. Jiangsu Xinning Modern
Performance |
| Timeline |
| Shuhua Sports |
| Jiangsu Xinning Modern |
Shuhua Sports and Jiangsu Xinning Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shuhua Sports and Jiangsu Xinning
The main advantage of trading using opposite Shuhua Sports and Jiangsu Xinning positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shuhua Sports position performs unexpectedly, Jiangsu Xinning 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 Jiangsu Xinning will offset losses from the drop in Jiangsu Xinning's long position.| Shuhua Sports vs. China Life Insurance | Shuhua Sports vs. National Silicon Industry | Shuhua Sports vs. Shanghai OPM Biosciences | Shuhua Sports vs. Nanhua Bio Medicine |
| Jiangsu Xinning vs. Jinling Hotel Corp | Jiangsu Xinning vs. Do Fluoride Chemicals Co | Jiangsu Xinning vs. Shandong Polymer Biochemicals | Jiangsu Xinning vs. TongFu Microelectronics Co |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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