Correlation Between Shuhua Sports and Southern PublishingMedia
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By analyzing existing cross correlation between Shuhua Sports Co and Southern PublishingMedia Co, you can compare the effects of market volatilities on Shuhua Sports and Southern PublishingMedia 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 Southern PublishingMedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shuhua Sports and Southern PublishingMedia.
Diversification Opportunities for Shuhua Sports and Southern PublishingMedia
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shuhua and Southern is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Shuhua Sports Co and Southern PublishingMedia Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Southern PublishingMedia 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 Southern PublishingMedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Southern PublishingMedia has no effect on the direction of Shuhua Sports i.e., Shuhua Sports and Southern PublishingMedia go up and down completely randomly.
Pair Corralation between Shuhua Sports and Southern PublishingMedia
Assuming the 90 days trading horizon Shuhua Sports is expected to generate 1.14 times less return on investment than Southern PublishingMedia. But when comparing it to its historical volatility, Shuhua Sports Co is 1.3 times less risky than Southern PublishingMedia. It trades about 0.17 of its potential returns per unit of risk. Southern PublishingMedia Co is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 1,169 in Southern PublishingMedia Co on September 2, 2024 and sell it today you would earn a total of 334.00 from holding Southern PublishingMedia Co or generate 28.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shuhua Sports Co vs. Southern PublishingMedia Co
Performance |
| Timeline |
| Shuhua Sports |
| Southern PublishingMedia |
Shuhua Sports and Southern PublishingMedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shuhua Sports and Southern PublishingMedia
The main advantage of trading using opposite Shuhua Sports and Southern PublishingMedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shuhua Sports position performs unexpectedly, Southern PublishingMedia 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 Southern PublishingMedia will offset losses from the drop in Southern PublishingMedia's long position.| Shuhua Sports vs. Nanjing Putian Telecommunications | Shuhua Sports vs. Shenzhen Hifuture Electric | Shuhua Sports vs. Tianjin Realty Development | Shuhua Sports vs. Shenyang Huitian Thermal |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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