Correlation Between Shuhua Sports and Guangdong Marubi
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By analyzing existing cross correlation between Shuhua Sports Co and Guangdong Marubi Biotechnology, you can compare the effects of market volatilities on Shuhua Sports and Guangdong Marubi 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 Guangdong Marubi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shuhua Sports and Guangdong Marubi.
Diversification Opportunities for Shuhua Sports and Guangdong Marubi
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shuhua and Guangdong is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Shuhua Sports Co and Guangdong Marubi Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Marubi Bio 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 Guangdong Marubi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Marubi Bio has no effect on the direction of Shuhua Sports i.e., Shuhua Sports and Guangdong Marubi go up and down completely randomly.
Pair Corralation between Shuhua Sports and Guangdong Marubi
Assuming the 90 days trading horizon Shuhua Sports Co is expected to under-perform the Guangdong Marubi. In addition to that, Shuhua Sports is 1.03 times more volatile than Guangdong Marubi Biotechnology. It trades about 0.0 of its total potential returns per unit of risk. Guangdong Marubi Biotechnology is currently generating about 0.01 per unit of volatility. If you would invest 3,202 in Guangdong Marubi Biotechnology on October 13, 2024 and sell it today you would lose (1.00) from holding Guangdong Marubi Biotechnology or give up 0.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shuhua Sports Co vs. Guangdong Marubi Biotechnology
Performance |
| Timeline |
| Shuhua Sports |
| Guangdong Marubi Bio |
Shuhua Sports and Guangdong Marubi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shuhua Sports and Guangdong Marubi
The main advantage of trading using opposite Shuhua Sports and Guangdong Marubi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shuhua Sports position performs unexpectedly, Guangdong Marubi 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 Guangdong Marubi will offset losses from the drop in Guangdong Marubi's long position.| Shuhua Sports vs. Suzhou Industrial Park | Shuhua Sports vs. Innovative Medical Management | Shuhua Sports vs. Anhui Jinhe Industrial | Shuhua Sports vs. Guangdong Jingyi Metal |
| Guangdong Marubi vs. Jiangsu Jinling Sports | Guangdong Marubi vs. Shuhua Sports Co | Guangdong Marubi vs. Hubeiyichang Transportation Group | Guangdong Marubi vs. Omnijoi Media Corp |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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