Correlation Between Shuhua Sports and Changjiang Jinggong
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By analyzing existing cross correlation between Shuhua Sports Co and Changjiang Jinggong Steel, you can compare the effects of market volatilities on Shuhua Sports and Changjiang Jinggong 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 Changjiang Jinggong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shuhua Sports and Changjiang Jinggong.
Diversification Opportunities for Shuhua Sports and Changjiang Jinggong
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Shuhua and Changjiang is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Shuhua Sports Co and Changjiang Jinggong Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changjiang Jinggong Steel 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 Changjiang Jinggong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changjiang Jinggong Steel has no effect on the direction of Shuhua Sports i.e., Shuhua Sports and Changjiang Jinggong go up and down completely randomly.
Pair Corralation between Shuhua Sports and Changjiang Jinggong
Assuming the 90 days trading horizon Shuhua Sports Co is expected to generate 2.18 times more return on investment than Changjiang Jinggong. However, Shuhua Sports is 2.18 times more volatile than Changjiang Jinggong Steel. It trades about -0.02 of its potential returns per unit of risk. Changjiang Jinggong Steel is currently generating about -0.08 per unit of risk. If you would invest 859.00 in Shuhua Sports Co on October 30, 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 | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shuhua Sports Co vs. Changjiang Jinggong Steel
Performance |
| Timeline |
| Shuhua Sports |
| Changjiang Jinggong Steel |
Shuhua Sports and Changjiang Jinggong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shuhua Sports and Changjiang Jinggong
The main advantage of trading using opposite Shuhua Sports and Changjiang Jinggong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shuhua Sports position performs unexpectedly, Changjiang Jinggong 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 Changjiang Jinggong will offset losses from the drop in Changjiang Jinggong's long position.| Shuhua Sports vs. Cabio Biotech Wuhan | Shuhua Sports vs. Beijing YanDong MicroElectronic | Shuhua Sports vs. Techshine Electronics Co | Shuhua Sports vs. Nantong Haixing Electronics |
| Changjiang Jinggong vs. Anhui Transport Consulting | Changjiang Jinggong vs. Sichuan Fulin Transportation | Changjiang Jinggong vs. Shuhua Sports Co | Changjiang Jinggong vs. Southern PublishingMedia Co |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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