Correlation Between Enterprise and China Shuifa

Can any of the company-specific risk be diversified away by investing in both Enterprise and China Shuifa at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Enterprise and China Shuifa into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Enterprise Group and China Shuifa Singyes, you can compare the effects of market volatilities on Enterprise and China Shuifa 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 Enterprise with a short position of China Shuifa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enterprise and China Shuifa.

Diversification Opportunities for Enterprise and China Shuifa

0.0

Correlation Coefficient

Enterprise  China Shuifa

Pay attention - limited upside

The 3 months correlation between Enterprise and China is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Enterprise Group and China Shuifa Singyes in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Shuifa Singyes and Enterprise 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 Enterprise Group are associated (or correlated) with China Shuifa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Shuifa Singyes has no effect on the direction of Enterprise i.e., Enterprise and China Shuifa go up and down completely randomly.

Pair Corralation between Enterprise and China Shuifa

If you would invest  3.00  in China Shuifa Singyes on August 18, 2025 and sell it today you would earn a total of  0.00  from holding China Shuifa Singyes or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Enterprise Group  vs.  China Shuifa Singyes

Enterprise Group

Risk-Adjusted Performance

Weakest

Over the last 90 days Enterprise Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's essential indicators remain nearly stable which may send shares a bit higher in December 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

China Shuifa Singyes

Risk-Adjusted Performance

Weakest

Over the last 90 days China Shuifa Singyes has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, China Shuifa is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Enterprise and China Shuifa

The main advantage of trading using opposite Enterprise and China Shuifa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enterprise position performs unexpectedly, China Shuifa 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 China Shuifa will offset losses from the drop in China Shuifa's long position.

The idea behind Enterprise Group and China Shuifa Singyes pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.