Correlation Between Shuhua Sports and Jiangsu Phoenix
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By analyzing existing cross correlation between Shuhua Sports Co and Jiangsu Phoenix Publishing, you can compare the effects of market volatilities on Shuhua Sports and Jiangsu Phoenix 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 Jiangsu Phoenix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shuhua Sports and Jiangsu Phoenix.
Diversification Opportunities for Shuhua Sports and Jiangsu Phoenix
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shuhua and Jiangsu is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Shuhua Sports Co and Jiangsu Phoenix Publishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Phoenix Publ 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 Jiangsu Phoenix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Phoenix Publ has no effect on the direction of Shuhua Sports i.e., Shuhua Sports and Jiangsu Phoenix go up and down completely randomly.
Pair Corralation between Shuhua Sports and Jiangsu Phoenix
Assuming the 90 days trading horizon Shuhua Sports Co is expected to generate 1.69 times more return on investment than Jiangsu Phoenix. However, Shuhua Sports is 1.69 times more volatile than Jiangsu Phoenix Publishing. It trades about 0.05 of its potential returns per unit of risk. Jiangsu Phoenix Publishing is currently generating about -0.03 per unit of risk. If you would invest 793.00 in Shuhua Sports Co on October 30, 2024 and sell it today you would earn a total of 22.00 from holding Shuhua Sports Co or generate 2.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shuhua Sports Co vs. Jiangsu Phoenix Publishing
Performance |
| Timeline |
| Shuhua Sports |
| Jiangsu Phoenix Publ |
Shuhua Sports and Jiangsu Phoenix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shuhua Sports and Jiangsu Phoenix
The main advantage of trading using opposite Shuhua Sports and Jiangsu Phoenix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shuhua Sports position performs unexpectedly, Jiangsu Phoenix 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 Jiangsu Phoenix will offset losses from the drop in Jiangsu Phoenix'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 |
| Jiangsu Phoenix vs. Bus Online Co | Jiangsu Phoenix vs. Holitech Technology Co | Jiangsu Phoenix vs. Gome Telecom Equipment | Jiangsu Phoenix vs. Cultural Investment Holdings |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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