Correlation Between Shuhua Sports and Weihai Honglin
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shuhua Sports Co and Weihai Honglin Electronic, you can compare the effects of market volatilities on Shuhua Sports and Weihai Honglin 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 Weihai Honglin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shuhua Sports and Weihai Honglin.
Diversification Opportunities for Shuhua Sports and Weihai Honglin
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Shuhua and Weihai is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Shuhua Sports Co and Weihai Honglin Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Weihai Honglin Electronic 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 Weihai Honglin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Weihai Honglin Electronic has no effect on the direction of Shuhua Sports i.e., Shuhua Sports and Weihai Honglin go up and down completely randomly.
Pair Corralation between Shuhua Sports and Weihai Honglin
Assuming the 90 days trading horizon Shuhua Sports Co is expected to under-perform the Weihai Honglin. But the stock apears to be less risky and, when comparing its historical volatility, Shuhua Sports Co is 1.44 times less risky than Weihai Honglin. The stock trades about -0.06 of its potential returns per unit of risk. The Weihai Honglin Electronic is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1,490 in Weihai Honglin Electronic on November 6, 2024 and sell it today you would earn a total of 117.00 from holding Weihai Honglin Electronic or generate 7.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shuhua Sports Co vs. Weihai Honglin Electronic
Performance |
| Timeline |
| Shuhua Sports |
| Weihai Honglin Electronic |
Shuhua Sports and Weihai Honglin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shuhua Sports and Weihai Honglin
The main advantage of trading using opposite Shuhua Sports and Weihai Honglin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shuhua Sports position performs unexpectedly, Weihai Honglin 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 Weihai Honglin will offset losses from the drop in Weihai Honglin's long position.| Shuhua Sports vs. Guangdong Silvere Sci | Shuhua Sports vs. Tibet Huayu Mining | Shuhua Sports vs. Guocheng Mining Co | Shuhua Sports vs. China Sports Industry |
| Weihai Honglin vs. Shanghai Yanpu Metal | Weihai Honglin vs. China Satellite Communications | Weihai Honglin vs. Allwin Telecommunication Co | Weihai Honglin vs. Western Metal Materials |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |