Correlation Between Eastern Communications and Shuhua Sports
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By analyzing existing cross correlation between Eastern Communications Co and Shuhua Sports Co, you can compare the effects of market volatilities on Eastern Communications 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 Eastern Communications with a short position of Shuhua Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastern Communications and Shuhua Sports.
Diversification Opportunities for Eastern Communications and Shuhua Sports
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Eastern and Shuhua is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Eastern Communications Co and Shuhua Sports Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shuhua Sports and Eastern Communications 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 Eastern Communications Co 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 Eastern Communications i.e., Eastern Communications and Shuhua Sports go up and down completely randomly.
Pair Corralation between Eastern Communications and Shuhua Sports
Assuming the 90 days trading horizon Eastern Communications is expected to generate 2.41 times less return on investment than Shuhua Sports. In addition to that, Eastern Communications is 1.16 times more volatile than Shuhua Sports Co. It trades about 0.11 of its total potential returns per unit of risk. Shuhua Sports Co is currently generating about 0.3 per unit of volatility. If you would invest 759.00 in Shuhua Sports Co on September 4, 2024 and sell it today you would earn a total of 100.00 from holding Shuhua Sports Co or generate 13.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eastern Communications Co vs. Shuhua Sports Co
Performance |
| Timeline |
| Eastern Communications |
| Shuhua Sports |
Eastern Communications and Shuhua Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastern Communications and Shuhua Sports
The main advantage of trading using opposite Eastern Communications and Shuhua Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastern Communications 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.| Eastern Communications vs. Industrial and Commercial | Eastern Communications vs. China Construction Bank | Eastern Communications vs. Bank of China | Eastern Communications vs. Agricultural Bank of |
| Shuhua Sports vs. BeiGene | Shuhua Sports vs. Kweichow Moutai Co | Shuhua Sports vs. Beijing Roborock Technology | Shuhua Sports 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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