Correlation Between Shuhua Sports and Guangdong Silvere
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By analyzing existing cross correlation between Shuhua Sports Co and Guangdong Silvere Sci, you can compare the effects of market volatilities on Shuhua Sports and Guangdong Silvere 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 Guangdong Silvere. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shuhua Sports and Guangdong Silvere.
Diversification Opportunities for Shuhua Sports and Guangdong Silvere
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shuhua and Guangdong is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Shuhua Sports Co and Guangdong Silvere Sci in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Silvere Sci 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 Guangdong Silvere. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Silvere Sci has no effect on the direction of Shuhua Sports i.e., Shuhua Sports and Guangdong Silvere go up and down completely randomly.
Pair Corralation between Shuhua Sports and Guangdong Silvere
Assuming the 90 days trading horizon Shuhua Sports Co is expected to generate 0.65 times more return on investment than Guangdong Silvere. However, Shuhua Sports Co is 1.53 times less risky than Guangdong Silvere. It trades about 0.17 of its potential returns per unit of risk. Guangdong Silvere Sci is currently generating about 0.09 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. Guangdong Silvere Sci
Performance |
Timeline |
Shuhua Sports |
Guangdong Silvere Sci |
Shuhua Sports and Guangdong Silvere Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shuhua Sports and Guangdong Silvere
The main advantage of trading using opposite Shuhua Sports and Guangdong Silvere positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shuhua Sports position performs unexpectedly, Guangdong Silvere 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 Guangdong Silvere will offset losses from the drop in Guangdong Silvere'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 |
Guangdong Silvere vs. Nuode Investment Co | Guangdong Silvere vs. Hunan TV Broadcast | Guangdong Silvere vs. Zhongrun Resources Investment | Guangdong Silvere vs. Tieling Newcity Investment |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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