Correlation Between Shuhua Sports and OBiO Technology
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By analyzing existing cross correlation between Shuhua Sports Co and OBiO Technology Corp, you can compare the effects of market volatilities on Shuhua Sports and OBiO Technology 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 OBiO Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shuhua Sports and OBiO Technology.
Diversification Opportunities for Shuhua Sports and OBiO Technology
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shuhua and OBiO is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Shuhua Sports Co and OBiO Technology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OBiO Technology Corp 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 OBiO Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OBiO Technology Corp has no effect on the direction of Shuhua Sports i.e., Shuhua Sports and OBiO Technology go up and down completely randomly.
Pair Corralation between Shuhua Sports and OBiO Technology
Assuming the 90 days trading horizon Shuhua Sports is expected to generate 1.47 times less return on investment than OBiO Technology. But when comparing it to its historical volatility, Shuhua Sports Co is 1.79 times less risky than OBiO Technology. It trades about 0.16 of its potential returns per unit of risk. OBiO Technology Corp is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 412.00 in OBiO Technology Corp on September 3, 2024 and sell it today you would earn a total of 140.00 from holding OBiO Technology Corp or generate 33.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shuhua Sports Co vs. OBiO Technology Corp
Performance |
| Timeline |
| Shuhua Sports |
| OBiO Technology Corp |
Shuhua Sports and OBiO Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shuhua Sports and OBiO Technology
The main advantage of trading using opposite Shuhua Sports and OBiO Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shuhua Sports position performs unexpectedly, OBiO Technology 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 OBiO Technology will offset losses from the drop in OBiO Technology's long position.| Shuhua Sports vs. PetroChina Co Ltd | Shuhua Sports vs. China Mobile Limited | Shuhua Sports vs. Industrial and Commercial | Shuhua Sports vs. China Life Insurance |
| OBiO Technology vs. Gan Yuan Foods | OBiO Technology vs. Jiahe Foods Industry | OBiO Technology vs. JuneYao Dairy Co | OBiO Technology vs. Tongyu Communication |
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 Stocks Directory module to find actively traded stocks across global markets.
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