Correlation Between Trina Solar and Shuhua Sports
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By analyzing existing cross correlation between Trina Solar Co and Shuhua Sports Co, you can compare the effects of market volatilities on Trina Solar 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 Trina Solar with a short position of Shuhua Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trina Solar and Shuhua Sports.
Diversification Opportunities for Trina Solar and Shuhua Sports
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Trina and Shuhua is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Trina Solar 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 Trina Solar 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 Trina Solar 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 Trina Solar i.e., Trina Solar and Shuhua Sports go up and down completely randomly.
Pair Corralation between Trina Solar and Shuhua Sports
Assuming the 90 days trading horizon Trina Solar Co is expected to under-perform the Shuhua Sports. In addition to that, Trina Solar is 1.15 times more volatile than Shuhua Sports Co. It trades about -0.06 of its total potential returns per unit of risk. Shuhua Sports Co is currently generating about 0.05 per unit of volatility. If you would invest 731.00 in Shuhua Sports Co on October 16, 2024 and sell it today you would earn a total of 48.00 from holding Shuhua Sports Co or generate 6.57% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Trina Solar Co vs. Shuhua Sports Co
Performance |
Timeline |
Trina Solar |
Shuhua Sports |
Trina Solar and Shuhua Sports Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Trina Solar and Shuhua Sports
The main advantage of trading using opposite Trina Solar and Shuhua Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trina Solar 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.Trina Solar vs. Cloud Live Technology | ||
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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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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