Correlation Between China Minmetals and Suzhou Douson
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By analyzing existing cross correlation between China Minmetals Rare and Suzhou Douson Drilling, you can compare the effects of market volatilities on China Minmetals and Suzhou Douson 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 China Minmetals with a short position of Suzhou Douson. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Minmetals and Suzhou Douson.
Diversification Opportunities for China Minmetals and Suzhou Douson
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and Suzhou is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding China Minmetals Rare and Suzhou Douson Drilling in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Douson Drilling and China Minmetals 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 China Minmetals Rare are associated (or correlated) with Suzhou Douson. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou Douson Drilling has no effect on the direction of China Minmetals i.e., China Minmetals and Suzhou Douson go up and down completely randomly.
Pair Corralation between China Minmetals and Suzhou Douson
Assuming the 90 days trading horizon China Minmetals Rare is expected to under-perform the Suzhou Douson. But the stock apears to be less risky and, when comparing its historical volatility, China Minmetals Rare is 2.29 times less risky than Suzhou Douson. The stock trades about -0.27 of its potential returns per unit of risk. The Suzhou Douson Drilling is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 2,523 in Suzhou Douson Drilling on October 10, 2024 and sell it today you would lose (53.00) from holding Suzhou Douson Drilling or give up 2.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Minmetals Rare vs. Suzhou Douson Drilling
Performance |
| Timeline |
| China Minmetals Rare |
| Suzhou Douson Drilling |
China Minmetals and Suzhou Douson Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Minmetals and Suzhou Douson
The main advantage of trading using opposite China Minmetals and Suzhou Douson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Minmetals position performs unexpectedly, Suzhou Douson 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 Douson will offset losses from the drop in Suzhou Douson's long position.| China Minmetals vs. Zijin Mining Group | China Minmetals vs. Wanhua Chemical Group | China Minmetals vs. Baoshan Iron Steel | China Minmetals vs. Shandong Gold Mining |
| Suzhou Douson vs. Northern United Publishing | Suzhou Douson vs. Offcn Education Technology | Suzhou Douson vs. Shaanxi Broadcast TV | Suzhou Douson vs. Jiangsu Phoenix Publishing |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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