Correlation Between Shuhua Sports and GUOMAI Culture
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By analyzing existing cross correlation between Shuhua Sports Co and GUOMAI Culture Media, you can compare the effects of market volatilities on Shuhua Sports and GUOMAI Culture 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 GUOMAI Culture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shuhua Sports and GUOMAI Culture.
Diversification Opportunities for Shuhua Sports and GUOMAI Culture
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Shuhua and GUOMAI is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Shuhua Sports Co and GUOMAI Culture Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GUOMAI Culture Media 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 GUOMAI Culture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GUOMAI Culture Media has no effect on the direction of Shuhua Sports i.e., Shuhua Sports and GUOMAI Culture go up and down completely randomly.
Pair Corralation between Shuhua Sports and GUOMAI Culture
Assuming the 90 days trading horizon Shuhua Sports Co is expected to generate 0.62 times more return on investment than GUOMAI Culture. However, Shuhua Sports Co is 1.62 times less risky than GUOMAI Culture. It trades about -0.02 of its potential returns per unit of risk. GUOMAI Culture Media is currently generating about -0.01 per unit of risk. If you would invest 1,010 in Shuhua Sports Co on October 16, 2024 and sell it today you would lose (231.00) from holding Shuhua Sports Co or give up 22.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shuhua Sports Co vs. GUOMAI Culture Media
Performance |
| Timeline |
| Shuhua Sports |
| GUOMAI Culture Media |
Shuhua Sports and GUOMAI Culture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shuhua Sports and GUOMAI Culture
The main advantage of trading using opposite Shuhua Sports and GUOMAI Culture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shuhua Sports position performs unexpectedly, GUOMAI Culture 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 GUOMAI Culture will offset losses from the drop in GUOMAI Culture's long position.| Shuhua Sports vs. Fujian Anjoy Foods | Shuhua Sports vs. Ligao Foods CoLtd | Shuhua Sports vs. Jilin Chemical Fibre | Shuhua Sports vs. Jinsanjiang Silicon Material |
| GUOMAI Culture vs. GRINM Semiconductor Materials | GUOMAI Culture vs. StarPower Semiconductor | GUOMAI Culture vs. Semiconductor Manufacturing Intl | GUOMAI Culture vs. Will Semiconductor 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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