Correlation Between Shuhua Sports and JCET Group
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By analyzing existing cross correlation between Shuhua Sports Co and JCET Group Co, you can compare the effects of market volatilities on Shuhua Sports and JCET Group 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 JCET Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shuhua Sports and JCET Group.
Diversification Opportunities for Shuhua Sports and JCET Group
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shuhua and JCET is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Shuhua Sports Co and JCET Group Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JCET Group 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 JCET Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JCET Group has no effect on the direction of Shuhua Sports i.e., Shuhua Sports and JCET Group go up and down completely randomly.
Pair Corralation between Shuhua Sports and JCET Group
Assuming the 90 days trading horizon Shuhua Sports Co is expected to under-perform the JCET Group. But the stock apears to be less risky and, when comparing its historical volatility, Shuhua Sports Co is 1.02 times less risky than JCET Group. The stock trades about 0.0 of its potential returns per unit of risk. The JCET Group Co is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2,700 in JCET Group Co on October 18, 2024 and sell it today you would earn a total of 1,299 from holding JCET Group Co or generate 48.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Shuhua Sports Co vs. JCET Group Co
Performance |
| Timeline |
| Shuhua Sports |
| JCET Group |
Shuhua Sports and JCET Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shuhua Sports and JCET Group
The main advantage of trading using opposite Shuhua Sports and JCET Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shuhua Sports position performs unexpectedly, JCET Group 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 JCET Group will offset losses from the drop in JCET Group's long position.| Shuhua Sports vs. Chinese Universe Publishing | Shuhua Sports vs. Ningbo Ligong Online | Shuhua Sports vs. Shanghai Yaoji Playing | Shuhua Sports vs. Jiangsu Jinling Sports |
| JCET Group vs. Aba Chemicals Corp | JCET Group vs. Guangdong Marubi Biotechnology | JCET Group vs. Shuhua Sports Co | JCET Group vs. Ningbo MedicalSystem Biotechnology |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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