Correlation Between Shuhua Sports and Gansu Yasheng
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By analyzing existing cross correlation between Shuhua Sports Co and Gansu Yasheng Industrial, you can compare the effects of market volatilities on Shuhua Sports and Gansu Yasheng 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 Gansu Yasheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shuhua Sports and Gansu Yasheng.
Diversification Opportunities for Shuhua Sports and Gansu Yasheng
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shuhua and Gansu is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Shuhua Sports Co and Gansu Yasheng Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gansu Yasheng Industrial 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 Gansu Yasheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gansu Yasheng Industrial has no effect on the direction of Shuhua Sports i.e., Shuhua Sports and Gansu Yasheng go up and down completely randomly.
Pair Corralation between Shuhua Sports and Gansu Yasheng
Assuming the 90 days trading horizon Shuhua Sports is expected to generate 2.07 times less return on investment than Gansu Yasheng. But when comparing it to its historical volatility, Shuhua Sports Co is 1.09 times less risky than Gansu Yasheng. It trades about 0.04 of its potential returns per unit of risk. Gansu Yasheng Industrial is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 281.00 in Gansu Yasheng Industrial on August 30, 2024 and sell it today you would earn a total of 17.00 from holding Gansu Yasheng Industrial or generate 6.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shuhua Sports Co vs. Gansu Yasheng Industrial
Performance |
| Timeline |
| Shuhua Sports |
| Gansu Yasheng Industrial |
Shuhua Sports and Gansu Yasheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shuhua Sports and Gansu Yasheng
The main advantage of trading using opposite Shuhua Sports and Gansu Yasheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shuhua Sports position performs unexpectedly, Gansu Yasheng 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 Gansu Yasheng will offset losses from the drop in Gansu Yasheng's long position.| Shuhua Sports vs. Cambricon Technologies Corp | Shuhua Sports vs. Loongson Technology Corp | Shuhua Sports vs. Shenzhen Fortune Trend | Shuhua Sports vs. Chongqing Road Bridge |
| Gansu Yasheng vs. BeiGene | Gansu Yasheng vs. Kweichow Moutai Co | Gansu Yasheng vs. Beijing Roborock Technology | Gansu Yasheng 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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