Correlation Between Shuhua Sports and Hubei Geoway
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By analyzing existing cross correlation between Shuhua Sports Co and Hubei Geoway Investment, you can compare the effects of market volatilities on Shuhua Sports and Hubei Geoway 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 Hubei Geoway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shuhua Sports and Hubei Geoway.
Diversification Opportunities for Shuhua Sports and Hubei Geoway
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shuhua and Hubei is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Shuhua Sports Co and Hubei Geoway Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubei Geoway Investment 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 Hubei Geoway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubei Geoway Investment has no effect on the direction of Shuhua Sports i.e., Shuhua Sports and Hubei Geoway go up and down completely randomly.
Pair Corralation between Shuhua Sports and Hubei Geoway
Assuming the 90 days trading horizon Shuhua Sports Co is expected to generate 0.97 times more return on investment than Hubei Geoway. However, Shuhua Sports Co is 1.04 times less risky than Hubei Geoway. It trades about -0.01 of its potential returns per unit of risk. Hubei Geoway Investment is currently generating about -0.01 per unit of risk. If you would invest 1,011 in Shuhua Sports Co on October 16, 2024 and sell it today you would lose (232.00) from holding Shuhua Sports Co or give up 22.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shuhua Sports Co vs. Hubei Geoway Investment
Performance |
| Timeline |
| Shuhua Sports |
| Hubei Geoway Investment |
Shuhua Sports and Hubei Geoway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shuhua Sports and Hubei Geoway
The main advantage of trading using opposite Shuhua Sports and Hubei Geoway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shuhua Sports position performs unexpectedly, Hubei Geoway 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 Hubei Geoway will offset losses from the drop in Hubei Geoway's long position.| Shuhua Sports vs. Fujian Anjoy Foods | Shuhua Sports vs. Ligao Foods CoLtd | Shuhua Sports vs. Jilin Chemical Fibre | Shuhua Sports vs. Jinsanjiang Silicon Material |
| Hubei Geoway vs. Tongxing Environmental Protection | Hubei Geoway vs. Penyao Environmental Protection | Hubei Geoway vs. Shuhua Sports Co | Hubei Geoway vs. Beijing Jiaman Dress |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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