Correlation Between Shuhua Sports and Hainan Mining
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By analyzing existing cross correlation between Shuhua Sports Co and Hainan Mining Co, you can compare the effects of market volatilities on Shuhua Sports and Hainan Mining 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 Hainan Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shuhua Sports and Hainan Mining.
Diversification Opportunities for Shuhua Sports and Hainan Mining
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shuhua and Hainan is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Shuhua Sports Co and Hainan Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hainan Mining 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 Hainan Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hainan Mining has no effect on the direction of Shuhua Sports i.e., Shuhua Sports and Hainan Mining go up and down completely randomly.
Pair Corralation between Shuhua Sports and Hainan Mining
Assuming the 90 days trading horizon Shuhua Sports Co is expected to generate 1.07 times more return on investment than Hainan Mining. However, Shuhua Sports is 1.07 times more volatile than Hainan Mining Co. It trades about 0.35 of its potential returns per unit of risk. Hainan Mining Co is currently generating about 0.02 per unit of risk. If you would invest 740.00 in Shuhua Sports Co on September 2, 2024 and sell it today you would earn a total of 119.00 from holding Shuhua Sports Co or generate 16.08% 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. Hainan Mining Co
Performance |
| Timeline |
| Shuhua Sports |
| Hainan Mining |
Shuhua Sports and Hainan Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shuhua Sports and Hainan Mining
The main advantage of trading using opposite Shuhua Sports and Hainan Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shuhua Sports position performs unexpectedly, Hainan Mining 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 Hainan Mining will offset losses from the drop in Hainan Mining'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 |
| Hainan Mining vs. Zijin Mining Group | Hainan Mining vs. Wanhua Chemical Group | Hainan Mining vs. Baoshan Iron Steel | Hainan Mining vs. Shandong Gold Mining |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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