Correlation Between Zhongshan Public and Suzhou Xingye
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By analyzing existing cross correlation between Zhongshan Public Utilities and Suzhou Xingye Material, you can compare the effects of market volatilities on Zhongshan Public 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 Zhongshan Public with a short position of Suzhou Xingye. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongshan Public and Suzhou Xingye.
Diversification Opportunities for Zhongshan Public and Suzhou Xingye
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Zhongshan and Suzhou is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Zhongshan Public Utilities 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 Zhongshan Public 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 Zhongshan Public Utilities 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 Zhongshan Public i.e., Zhongshan Public and Suzhou Xingye go up and down completely randomly.
Pair Corralation between Zhongshan Public and Suzhou Xingye
Assuming the 90 days trading horizon Zhongshan Public is expected to generate 12.28 times less return on investment than Suzhou Xingye. But when comparing it to its historical volatility, Zhongshan Public Utilities is 3.18 times less risky than Suzhou Xingye. It trades about 0.05 of its potential returns per unit of risk. Suzhou Xingye Material is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 935.00 in Suzhou Xingye Material on October 30, 2024 and sell it today you would earn a total of 372.00 from holding Suzhou Xingye Material or generate 39.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongshan Public Utilities vs. Suzhou Xingye Material
Performance |
| Timeline |
| Zhongshan Public Uti |
| Suzhou Xingye Material |
Zhongshan Public and Suzhou Xingye Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongshan Public and Suzhou Xingye
The main advantage of trading using opposite Zhongshan Public and Suzhou Xingye positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongshan Public 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.| Zhongshan Public vs. Dymatic Chemicals | Zhongshan Public vs. Ningxia Younglight Chemicals | Zhongshan Public vs. LianChuang Electronic Technology | Zhongshan Public vs. Ningbo Kangqiang Electronics |
| Suzhou Xingye vs. Youyou Foods Co | Suzhou Xingye vs. Mengtian Home Group | Suzhou Xingye vs. Shandong Homey Aquatic | Suzhou Xingye vs. Yankershop Food 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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