Correlation Between Shuhua Sports and Betta Pharmaceuticals
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shuhua Sports Co and Betta Pharmaceuticals Co, you can compare the effects of market volatilities on Shuhua Sports and Betta Pharmaceuticals 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 Betta Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shuhua Sports and Betta Pharmaceuticals.
Diversification Opportunities for Shuhua Sports and Betta Pharmaceuticals
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shuhua and Betta is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Shuhua Sports Co and Betta Pharmaceuticals Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Betta Pharmaceuticals 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 Betta Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Betta Pharmaceuticals has no effect on the direction of Shuhua Sports i.e., Shuhua Sports and Betta Pharmaceuticals go up and down completely randomly.
Pair Corralation between Shuhua Sports and Betta Pharmaceuticals
Assuming the 90 days trading horizon Shuhua Sports Co is expected to generate 0.53 times more return on investment than Betta Pharmaceuticals. However, Shuhua Sports Co is 1.88 times less risky than Betta Pharmaceuticals. It trades about 0.23 of its potential returns per unit of risk. Betta Pharmaceuticals Co is currently generating about 0.1 per unit of risk. If you would invest 791.00 in Shuhua Sports Co on September 13, 2024 and sell it today you would earn a total of 88.00 from holding Shuhua Sports Co or generate 11.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shuhua Sports Co vs. Betta Pharmaceuticals Co
Performance |
| Timeline |
| Shuhua Sports |
| Betta Pharmaceuticals |
Shuhua Sports and Betta Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shuhua Sports and Betta Pharmaceuticals
The main advantage of trading using opposite Shuhua Sports and Betta Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shuhua Sports position performs unexpectedly, Betta Pharmaceuticals 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 Betta Pharmaceuticals will offset losses from the drop in Betta Pharmaceuticals' 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 |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |