Correlation Between Shuhua Sports and Wuhan Yangtze
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shuhua Sports Co and Wuhan Yangtze Communication, you can compare the effects of market volatilities on Shuhua Sports and Wuhan Yangtze 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 Wuhan Yangtze. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shuhua Sports and Wuhan Yangtze.
Diversification Opportunities for Shuhua Sports and Wuhan Yangtze
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shuhua and Wuhan is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Shuhua Sports Co and Wuhan Yangtze Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wuhan Yangtze Commun 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 Wuhan Yangtze. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wuhan Yangtze Commun has no effect on the direction of Shuhua Sports i.e., Shuhua Sports and Wuhan Yangtze go up and down completely randomly.
Pair Corralation between Shuhua Sports and Wuhan Yangtze
Assuming the 90 days trading horizon Shuhua Sports Co is expected to generate 0.97 times more return on investment than Wuhan Yangtze. However, Shuhua Sports Co is 1.03 times less risky than Wuhan Yangtze. It trades about -0.02 of its potential returns per unit of risk. Wuhan Yangtze Communication is currently generating about -0.14 per unit of risk. If you would invest 859.00 in Shuhua Sports Co on November 1, 2024 and sell it today you would lose (44.00) from holding Shuhua Sports Co or give up 5.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shuhua Sports Co vs. Wuhan Yangtze Communication
Performance |
| Timeline |
| Shuhua Sports |
| Wuhan Yangtze Commun |
Shuhua Sports and Wuhan Yangtze Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shuhua Sports and Wuhan Yangtze
The main advantage of trading using opposite Shuhua Sports and Wuhan Yangtze positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shuhua Sports position performs unexpectedly, Wuhan Yangtze 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 Wuhan Yangtze will offset losses from the drop in Wuhan Yangtze's long position.| Shuhua Sports vs. Ming Yang Smart | Shuhua Sports vs. 159681 | Shuhua Sports vs. 159005 | Shuhua Sports vs. Loctek Ergonomic Technology |
| Wuhan Yangtze vs. Jiaozuo Wanfang Aluminum | Wuhan Yangtze vs. Nanjing Putian Telecommunications | Wuhan Yangtze vs. Sino Platinum Metals Co | Wuhan Yangtze vs. Jilin Jlu Communication |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |