Correlation Between Shuhua Sports and Dook Media
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By analyzing existing cross correlation between Shuhua Sports Co and Dook Media Group, you can compare the effects of market volatilities on Shuhua Sports and Dook Media 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 Dook Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shuhua Sports and Dook Media.
Diversification Opportunities for Shuhua Sports and Dook Media
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shuhua and Dook is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Shuhua Sports Co and Dook Media Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dook Media Group 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 Dook Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dook Media Group has no effect on the direction of Shuhua Sports i.e., Shuhua Sports and Dook Media go up and down completely randomly.
Pair Corralation between Shuhua Sports and Dook Media
Assuming the 90 days trading horizon Shuhua Sports Co is expected to generate 0.61 times more return on investment than Dook Media. However, Shuhua Sports Co is 1.63 times less risky than Dook Media. It trades about 0.3 of its potential returns per unit of risk. Dook Media Group is currently generating about 0.13 per unit of risk. If you would invest 759.00 in Shuhua Sports Co on September 4, 2024 and sell it today you would earn a total of 100.00 from holding Shuhua Sports Co or generate 13.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Shuhua Sports Co vs. Dook Media Group
Performance |
| Timeline |
| Shuhua Sports |
| Dook Media Group |
Shuhua Sports and Dook Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shuhua Sports and Dook Media
The main advantage of trading using opposite Shuhua Sports and Dook Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shuhua Sports position performs unexpectedly, Dook Media 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 Dook Media will offset losses from the drop in Dook Media'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 |
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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