Correlation Between Shuhua Sports and Thinkingdom Media
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shuhua Sports Co and Thinkingdom Media Group, you can compare the effects of market volatilities on Shuhua Sports and Thinkingdom Media 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 Thinkingdom Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shuhua Sports and Thinkingdom Media.
Diversification Opportunities for Shuhua Sports and Thinkingdom Media
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shuhua and Thinkingdom is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Shuhua Sports Co and Thinkingdom Media Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thinkingdom Media 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 Thinkingdom Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thinkingdom Media has no effect on the direction of Shuhua Sports i.e., Shuhua Sports and Thinkingdom Media go up and down completely randomly.
Pair Corralation between Shuhua Sports and Thinkingdom Media
Assuming the 90 days trading horizon Shuhua Sports is expected to generate 1.24 times less return on investment than Thinkingdom Media. But when comparing it to its historical volatility, Shuhua Sports Co is 1.27 times less risky than Thinkingdom Media. It trades about 0.15 of its potential returns per unit of risk. Thinkingdom Media Group is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 1,542 in Thinkingdom Media Group on September 24, 2024 and sell it today you would earn a total of 492.00 from holding Thinkingdom Media Group or generate 31.91% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Shuhua Sports Co vs. Thinkingdom Media Group
Performance |
Timeline |
Shuhua Sports |
Thinkingdom Media |
Shuhua Sports and Thinkingdom Media Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shuhua Sports and Thinkingdom Media
The main advantage of trading using opposite Shuhua Sports and Thinkingdom Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shuhua Sports position performs unexpectedly, Thinkingdom Media 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 Thinkingdom Media will offset losses from the drop in Thinkingdom Media'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 |
Thinkingdom Media vs. Allied Machinery Co | Thinkingdom Media vs. Hongrun Construction Group | Thinkingdom Media vs. Xingguang Agricultural Mach | Thinkingdom Media vs. Shuhua Sports Co |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |