Correlation Between Shuhua Sports and Shanxi Lanhua
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By analyzing existing cross correlation between Shuhua Sports Co and Shanxi Lanhua Sci Tech, you can compare the effects of market volatilities on Shuhua Sports and Shanxi Lanhua 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 Shanxi Lanhua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shuhua Sports and Shanxi Lanhua.
Diversification Opportunities for Shuhua Sports and Shanxi Lanhua
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Shuhua and Shanxi is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Shuhua Sports Co and Shanxi Lanhua Sci Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanxi Lanhua Sci 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 Shanxi Lanhua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanxi Lanhua Sci has no effect on the direction of Shuhua Sports i.e., Shuhua Sports and Shanxi Lanhua go up and down completely randomly.
Pair Corralation between Shuhua Sports and Shanxi Lanhua
Assuming the 90 days trading horizon Shuhua Sports Co is expected to generate 2.54 times more return on investment than Shanxi Lanhua. However, Shuhua Sports is 2.54 times more volatile than Shanxi Lanhua Sci Tech. It trades about -0.06 of its potential returns per unit of risk. Shanxi Lanhua Sci Tech is currently generating about -0.27 per unit of risk. If you would invest 845.00 in Shuhua Sports Co on November 6, 2024 and sell it today you would lose (30.00) from holding Shuhua Sports Co or give up 3.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shuhua Sports Co vs. Shanxi Lanhua Sci Tech
Performance |
| Timeline |
| Shuhua Sports |
| Shanxi Lanhua Sci |
Shuhua Sports and Shanxi Lanhua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shuhua Sports and Shanxi Lanhua
The main advantage of trading using opposite Shuhua Sports and Shanxi Lanhua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shuhua Sports position performs unexpectedly, Shanxi Lanhua 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 Shanxi Lanhua will offset losses from the drop in Shanxi Lanhua'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 |
| Shanxi Lanhua vs. Everdisplay Optronics Shanghai | Shanxi Lanhua vs. Jiangsu Jinling Sports | Shanxi Lanhua vs. Industrial Bank Co | Shanxi Lanhua vs. Financial Street Holdings |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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