Correlation Between Shuhua Sports and Gotion High
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By analyzing existing cross correlation between Shuhua Sports Co and Gotion High tech, you can compare the effects of market volatilities on Shuhua Sports and Gotion High 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 Gotion High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shuhua Sports and Gotion High.
Diversification Opportunities for Shuhua Sports and Gotion High
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shuhua and Gotion is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Shuhua Sports Co and Gotion High tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gotion High tech 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 Gotion High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gotion High tech has no effect on the direction of Shuhua Sports i.e., Shuhua Sports and Gotion High go up and down completely randomly.
Pair Corralation between Shuhua Sports and Gotion High
Assuming the 90 days trading horizon Shuhua Sports Co is expected to generate 0.8 times more return on investment than Gotion High. However, Shuhua Sports Co is 1.25 times less risky than Gotion High. It trades about 0.17 of its potential returns per unit of risk. Gotion High tech is currently generating about 0.11 per unit of risk. If you would invest 657.00 in Shuhua Sports Co on September 23, 2024 and sell it today you would earn a total of 199.00 from holding Shuhua Sports Co or generate 30.29% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Shuhua Sports Co vs. Gotion High tech
Performance |
Timeline |
Shuhua Sports |
Gotion High tech |
Shuhua Sports and Gotion High Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shuhua Sports and Gotion High
The main advantage of trading using opposite Shuhua Sports and Gotion High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shuhua Sports position performs unexpectedly, Gotion High 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 Gotion High will offset losses from the drop in Gotion High's long position.Shuhua Sports vs. PetroChina Co Ltd | Shuhua Sports vs. China Mobile Limited | Shuhua Sports vs. CNOOC Limited | Shuhua Sports vs. Ping An Insurance |
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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