Correlation Between Shuhua Sports and Jahen Household
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By analyzing existing cross correlation between Shuhua Sports Co and Jahen Household Products, you can compare the effects of market volatilities on Shuhua Sports and Jahen Household 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 Jahen Household. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shuhua Sports and Jahen Household.
Diversification Opportunities for Shuhua Sports and Jahen Household
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shuhua and Jahen is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Shuhua Sports Co and Jahen Household Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jahen Household 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 Jahen Household. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jahen Household Products has no effect on the direction of Shuhua Sports i.e., Shuhua Sports and Jahen Household go up and down completely randomly.
Pair Corralation between Shuhua Sports and Jahen Household
Assuming the 90 days trading horizon Shuhua Sports Co is expected to generate 0.79 times more return on investment than Jahen Household. However, Shuhua Sports Co is 1.27 times less risky than Jahen Household. It trades about -0.01 of its potential returns per unit of risk. Jahen Household Products is currently generating about -0.01 per unit of risk. If you would invest 1,054 in Shuhua Sports Co on September 26, 2024 and sell it today you would lose (256.00) from holding Shuhua Sports Co or give up 24.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shuhua Sports Co vs. Jahen Household Products
Performance |
| Timeline |
| Shuhua Sports |
| Jahen Household Products |
Shuhua Sports and Jahen Household Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shuhua Sports and Jahen Household
The main advantage of trading using opposite Shuhua Sports and Jahen Household positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shuhua Sports position performs unexpectedly, Jahen Household 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 Jahen Household will offset losses from the drop in Jahen Household's long position.| Shuhua Sports vs. Servyou Software Group | Shuhua Sports vs. Hainan Airlines Co | Shuhua Sports vs. Juneyao Airlines | Shuhua Sports vs. Xiamen Goldenhome Co |
| Jahen Household vs. Shuhua Sports Co | Jahen Household vs. Sportsoul Co Ltd | Jahen Household vs. Beijing Bashi Media | Jahen Household vs. Guilin Seamild Foods |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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