Correlation Between Shuhua Sports and Hangzhou Gisway
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By analyzing existing cross correlation between Shuhua Sports Co and Hangzhou Gisway Information, you can compare the effects of market volatilities on Shuhua Sports and Hangzhou Gisway 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 Hangzhou Gisway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shuhua Sports and Hangzhou Gisway.
Diversification Opportunities for Shuhua Sports and Hangzhou Gisway
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Shuhua and Hangzhou is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Shuhua Sports Co and Hangzhou Gisway Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Gisway Info 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 Hangzhou Gisway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Gisway Info has no effect on the direction of Shuhua Sports i.e., Shuhua Sports and Hangzhou Gisway go up and down completely randomly.
Pair Corralation between Shuhua Sports and Hangzhou Gisway
Assuming the 90 days trading horizon Shuhua Sports Co is expected to generate 1.01 times more return on investment than Hangzhou Gisway. However, Shuhua Sports is 1.01 times more volatile than Hangzhou Gisway Information. It trades about -0.09 of its potential returns per unit of risk. Hangzhou Gisway Information is currently generating about -0.11 per unit of risk. If you would invest 868.00 in Shuhua Sports Co on November 3, 2024 and sell it today you would lose (53.00) from holding Shuhua Sports Co or give up 6.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shuhua Sports Co vs. Hangzhou Gisway Information
Performance |
| Timeline |
| Shuhua Sports |
| Hangzhou Gisway Info |
Shuhua Sports and Hangzhou Gisway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shuhua Sports and Hangzhou Gisway
The main advantage of trading using opposite Shuhua Sports and Hangzhou Gisway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shuhua Sports position performs unexpectedly, Hangzhou Gisway 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 Hangzhou Gisway will offset losses from the drop in Hangzhou Gisway's long position.| Shuhua Sports vs. Shenzhen Bioeasy Biotechnology | Shuhua Sports vs. Shanghai Rightongene Biotechnology | Shuhua Sports vs. Guangdong Marubi Biotechnology | Shuhua Sports vs. Anhui Huaheng Biotechnology |
| Hangzhou Gisway vs. China State Construction | Hangzhou Gisway vs. Poly Real Estate | Hangzhou Gisway vs. China Vanke Co | Hangzhou Gisway vs. China Merchants Shekou |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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