Correlation Between Hengli Industrial and Soochow Suzhou
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By analyzing existing cross correlation between Hengli Industrial Development and Soochow Suzhou Industrial, you can compare the effects of market volatilities on Hengli Industrial and Soochow Suzhou 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 Hengli Industrial with a short position of Soochow Suzhou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hengli Industrial and Soochow Suzhou.
Diversification Opportunities for Hengli Industrial and Soochow Suzhou
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Hengli and Soochow is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Hengli Industrial Development and Soochow Suzhou Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Soochow Suzhou Industrial and Hengli Industrial 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 Hengli Industrial Development are associated (or correlated) with Soochow Suzhou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Soochow Suzhou Industrial has no effect on the direction of Hengli Industrial i.e., Hengli Industrial and Soochow Suzhou go up and down completely randomly.
Pair Corralation between Hengli Industrial and Soochow Suzhou
Assuming the 90 days trading horizon Hengli Industrial Development is expected to generate 3.56 times more return on investment than Soochow Suzhou. However, Hengli Industrial is 3.56 times more volatile than Soochow Suzhou Industrial. It trades about 0.2 of its potential returns per unit of risk. Soochow Suzhou Industrial is currently generating about 0.54 per unit of risk. If you would invest 211.00 in Hengli Industrial Development on November 5, 2024 and sell it today you would earn a total of 19.00 from holding Hengli Industrial Development or generate 9.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hengli Industrial Development vs. Soochow Suzhou Industrial
Performance |
| Timeline |
| Hengli Industrial |
| Soochow Suzhou Industrial |
Hengli Industrial and Soochow Suzhou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hengli Industrial and Soochow Suzhou
The main advantage of trading using opposite Hengli Industrial and Soochow Suzhou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hengli Industrial position performs unexpectedly, Soochow Suzhou 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 Soochow Suzhou will offset losses from the drop in Soochow Suzhou's long position.| Hengli Industrial vs. Hainan Haiqi Transportation | Hengli Industrial vs. Guangdong Silvere Sci | Hengli Industrial vs. Shuhua Sports Co | Hengli Industrial vs. Fujian Oriental Silver |
| Soochow Suzhou vs. Sanbo Hospital Management | Soochow Suzhou vs. Dawning Information Industry | Soochow Suzhou vs. Wonders Information | Soochow Suzhou vs. Shanghai CEO Environmental |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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