Correlation Between Hunan Investment and Suzhou Xingye
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By analyzing existing cross correlation between Hunan Investment Group and Suzhou Xingye Material, you can compare the effects of market volatilities on Hunan Investment and Suzhou Xingye 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 Hunan Investment with a short position of Suzhou Xingye. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunan Investment and Suzhou Xingye.
Diversification Opportunities for Hunan Investment and Suzhou Xingye
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Hunan and Suzhou is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Hunan Investment Group and Suzhou Xingye Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Xingye Material and Hunan Investment 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 Hunan Investment Group are associated (or correlated) with Suzhou Xingye. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou Xingye Material has no effect on the direction of Hunan Investment i.e., Hunan Investment and Suzhou Xingye go up and down completely randomly.
Pair Corralation between Hunan Investment and Suzhou Xingye
Assuming the 90 days trading horizon Hunan Investment Group is expected to generate 0.43 times more return on investment than Suzhou Xingye. However, Hunan Investment Group is 2.34 times less risky than Suzhou Xingye. It trades about -0.04 of its potential returns per unit of risk. Suzhou Xingye Material is currently generating about -0.42 per unit of risk. If you would invest 525.00 in Hunan Investment Group on November 27, 2024 and sell it today you would lose (5.00) from holding Hunan Investment Group or give up 0.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hunan Investment Group vs. Suzhou Xingye Material
Performance |
| Timeline |
| Hunan Investment |
| Suzhou Xingye Material |
Hunan Investment and Suzhou Xingye Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunan Investment and Suzhou Xingye
The main advantage of trading using opposite Hunan Investment and Suzhou Xingye positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunan Investment position performs unexpectedly, Suzhou Xingye 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 Suzhou Xingye will offset losses from the drop in Suzhou Xingye's long position.| Hunan Investment vs. CareRay Digital Medical | Hunan Investment vs. Heren Health Co | Hunan Investment vs. Winner Medical Co | Hunan Investment vs. Andon Health Co |
| Suzhou Xingye vs. Guangdong Transtek Medical | Suzhou Xingye vs. Tangel Publishing | Suzhou Xingye vs. Shandong Publishing Media | Suzhou Xingye vs. Bohai Leasing 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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