Correlation Between Shenzhen Fortune and Shuhua Sports
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By analyzing existing cross correlation between Shenzhen Fortune Trend and Shuhua Sports Co, you can compare the effects of market volatilities on Shenzhen Fortune 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 Shenzhen Fortune with a short position of Shuhua Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Fortune and Shuhua Sports.
Diversification Opportunities for Shenzhen Fortune and Shuhua Sports
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Shenzhen and Shuhua is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Fortune Trend and Shuhua Sports Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shuhua Sports and Shenzhen Fortune 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 Shenzhen Fortune Trend 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 Shenzhen Fortune i.e., Shenzhen Fortune and Shuhua Sports go up and down completely randomly.
Pair Corralation between Shenzhen Fortune and Shuhua Sports
Assuming the 90 days trading horizon Shenzhen Fortune Trend is expected to under-perform the Shuhua Sports. But the stock apears to be less risky and, when comparing its historical volatility, Shenzhen Fortune Trend is 1.09 times less risky than Shuhua Sports. The stock trades about -0.16 of its potential returns per unit of risk. The Shuhua Sports Co is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 802.00 in Shuhua Sports Co on October 24, 2024 and sell it today you would earn a total of 42.00 from holding Shuhua Sports Co or generate 5.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Shenzhen Fortune Trend vs. Shuhua Sports Co
Performance |
| Timeline |
| Shenzhen Fortune Trend |
| Shuhua Sports |
Shenzhen Fortune and Shuhua Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Fortune and Shuhua Sports
The main advantage of trading using opposite Shenzhen Fortune and Shuhua Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Fortune 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.| Shenzhen Fortune vs. Shandong Publishing Media | Shenzhen Fortune vs. Xinhua Winshare Publishing | Shenzhen Fortune vs. Caihong Display Devices | Shenzhen Fortune vs. Tongyu Communication |
| Shuhua Sports vs. Jilin Chemical Fibre | Shuhua Sports vs. Jinsanjiang Silicon Material | Shuhua Sports vs. Tongyu Communication | Shuhua Sports vs. Wuxi Chemical Equipment |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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