Correlation Between ACM Research and Shuhua Sports
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By analyzing existing cross correlation between ACM Research Shanghai and Shuhua Sports Co, you can compare the effects of market volatilities on ACM Research and Shuhua Sports 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 ACM Research with a short position of Shuhua Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of ACM Research and Shuhua Sports.
Diversification Opportunities for ACM Research and Shuhua Sports
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ACM and Shuhua is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding ACM Research Shanghai and Shuhua Sports Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shuhua Sports and ACM Research 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 ACM Research Shanghai are associated (or correlated) with Shuhua Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shuhua Sports has no effect on the direction of ACM Research i.e., ACM Research and Shuhua Sports go up and down completely randomly.
Pair Corralation between ACM Research and Shuhua Sports
Assuming the 90 days trading horizon ACM Research Shanghai is expected to under-perform the Shuhua Sports. But the stock apears to be less risky and, when comparing its historical volatility, ACM Research Shanghai is 2.98 times less risky than Shuhua Sports. The stock trades about -0.41 of its potential returns per unit of risk. The Shuhua Sports Co is currently generating about -0.09 of returns per unit of risk over similar time horizon. If you would invest 902.00 in Shuhua Sports Co on October 14, 2024 and sell it today you would lose (81.00) from holding Shuhua Sports Co or give up 8.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ACM Research Shanghai vs. Shuhua Sports Co
Performance |
| Timeline |
| ACM Research Shanghai |
| Shuhua Sports |
ACM Research and Shuhua Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ACM Research and Shuhua Sports
The main advantage of trading using opposite ACM Research and Shuhua Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ACM Research position performs unexpectedly, Shuhua Sports 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 Shuhua Sports will offset losses from the drop in Shuhua Sports' long position.| ACM Research vs. Shenzhen Topway Video | ACM Research vs. Emdoor Information Co | ACM Research vs. Kidswant Children Products | ACM Research vs. Chinese Universe Publishing |
| Shuhua Sports vs. Sinocat Environmental Technology | Shuhua Sports vs. Elite Color Environmental | Shuhua Sports vs. Nanxing Furniture Machinery | Shuhua Sports vs. Aofu Environmental 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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