Correlation Between Shuhua Sports and Hunan Fangsheng
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By analyzing existing cross correlation between Shuhua Sports Co and Hunan Fangsheng Pharm, you can compare the effects of market volatilities on Shuhua Sports and Hunan Fangsheng 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 Hunan Fangsheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shuhua Sports and Hunan Fangsheng.
Diversification Opportunities for Shuhua Sports and Hunan Fangsheng
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Shuhua and Hunan is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Shuhua Sports Co and Hunan Fangsheng Pharm in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunan Fangsheng Pharm 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 Hunan Fangsheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hunan Fangsheng Pharm has no effect on the direction of Shuhua Sports i.e., Shuhua Sports and Hunan Fangsheng go up and down completely randomly.
Pair Corralation between Shuhua Sports and Hunan Fangsheng
Assuming the 90 days trading horizon Shuhua Sports Co is expected to generate 1.01 times more return on investment than Hunan Fangsheng. However, Shuhua Sports is 1.01 times more volatile than Hunan Fangsheng Pharm. It trades about 0.23 of its potential returns per unit of risk. Hunan Fangsheng Pharm is currently generating about -0.16 per unit of risk. If you would invest 791.00 in Shuhua Sports Co on September 13, 2024 and sell it today you would earn a total of 88.00 from holding Shuhua Sports Co or generate 11.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shuhua Sports Co vs. Hunan Fangsheng Pharm
Performance |
| Timeline |
| Shuhua Sports |
| Hunan Fangsheng Pharm |
Shuhua Sports and Hunan Fangsheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shuhua Sports and Hunan Fangsheng
The main advantage of trading using opposite Shuhua Sports and Hunan Fangsheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shuhua Sports position performs unexpectedly, Hunan Fangsheng 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 Hunan Fangsheng will offset losses from the drop in Hunan Fangsheng's long position.| Shuhua Sports vs. Lutian Machinery Co | Shuhua Sports vs. China Longyuan Power | Shuhua Sports vs. PetroChina Co Ltd | Shuhua Sports vs. Bank of China |
| Hunan Fangsheng vs. BeiGene | Hunan Fangsheng vs. Kweichow Moutai Co | Hunan Fangsheng vs. Beijing Roborock Technology | Hunan Fangsheng vs. G bits Network Technology |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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