Correlation Between Shuhua Sports and Beijing Originwater
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By analyzing existing cross correlation between Shuhua Sports Co and Beijing Originwater Technology, you can compare the effects of market volatilities on Shuhua Sports and Beijing Originwater 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 Originwater. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shuhua Sports and Beijing Originwater.
Diversification Opportunities for Shuhua Sports and Beijing Originwater
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shuhua and Beijing is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Shuhua Sports Co and Beijing Originwater Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Originwater 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 Originwater. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Originwater has no effect on the direction of Shuhua Sports i.e., Shuhua Sports and Beijing Originwater go up and down completely randomly.
Pair Corralation between Shuhua Sports and Beijing Originwater
Assuming the 90 days trading horizon Shuhua Sports Co is expected to under-perform the Beijing Originwater. In addition to that, Shuhua Sports is 1.04 times more volatile than Beijing Originwater Technology. It trades about 0.0 of its total potential returns per unit of risk. Beijing Originwater Technology is currently generating about 0.03 per unit of volatility. If you would invest 484.00 in Beijing Originwater Technology on September 4, 2024 and sell it today you would earn a total of 105.00 from holding Beijing Originwater Technology or generate 21.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.79% |
| Values | Daily Returns |
Shuhua Sports Co vs. Beijing Originwater Technology
Performance |
| Timeline |
| Shuhua Sports |
| Beijing Originwater |
Shuhua Sports and Beijing Originwater Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shuhua Sports and Beijing Originwater
The main advantage of trading using opposite Shuhua Sports and Beijing Originwater positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shuhua Sports position performs unexpectedly, Beijing Originwater 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 Originwater will offset losses from the drop in Beijing Originwater'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 Originwater vs. Dezhan HealthCare Co | Beijing Originwater vs. Humanwell Healthcare Group | Beijing Originwater vs. Mingchen Health Co | Beijing Originwater vs. Longmaster Information Tech |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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