Correlation Between China Securities and Soochow Suzhou
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By analyzing existing cross correlation between China Securities 800 and Soochow Suzhou Industrial, you can compare the effects of market volatilities on China Securities 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 China Securities with a short position of Soochow Suzhou. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and Soochow Suzhou.
Diversification Opportunities for China Securities and Soochow Suzhou
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and Soochow is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 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 China Securities 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 Securities 800 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 China Securities i.e., China Securities and Soochow Suzhou go up and down completely randomly.
Pair Corralation between China Securities and Soochow Suzhou
Assuming the 90 days trading horizon China Securities 800 is expected to under-perform the Soochow Suzhou. In addition to that, China Securities is 2.07 times more volatile than Soochow Suzhou Industrial. It trades about -0.06 of its total potential returns per unit of risk. Soochow Suzhou Industrial is currently generating about -0.01 per unit of volatility. If you would invest 348.00 in Soochow Suzhou Industrial on October 14, 2024 and sell it today you would lose (2.00) from holding Soochow Suzhou Industrial or give up 0.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Securities 800 vs. Soochow Suzhou Industrial
Performance |
| Timeline |
China Securities and Soochow Suzhou Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
Soochow Suzhou Industrial
Pair trading matchups for Soochow Suzhou
Pair Trading with China Securities and Soochow Suzhou
The main advantage of trading using opposite China Securities and Soochow Suzhou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities 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.| China Securities vs. Sunwave Communications Co | China Securities vs. Dongfeng Automobile Co | China Securities vs. Nanjing Vishee Medical | China Securities vs. Haima Automobile Group |
| Soochow Suzhou vs. Servyou Software Group | Soochow Suzhou vs. Holitech Technology Co | Soochow Suzhou vs. Hangzhou Pinming Software | Soochow Suzhou vs. Bingo Software 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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