Correlation Between China Securities and Suzhou Douson
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Securities 800 and Suzhou Douson Drilling, you can compare the effects of market volatilities on China Securities 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 Securities with a short position of Suzhou Douson. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and Suzhou Douson.
Diversification Opportunities for China Securities and Suzhou Douson
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and Suzhou is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 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 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 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 Securities i.e., China Securities and Suzhou Douson go up and down completely randomly.
Pair Corralation between China Securities and Suzhou Douson
Assuming the 90 days trading horizon China Securities 800 is expected to generate 0.39 times more return on investment than Suzhou Douson. However, China Securities 800 is 2.56 times less risky than Suzhou Douson. It trades about 0.0 of its potential returns per unit of risk. Suzhou Douson Drilling is currently generating about -0.01 per unit of risk. If you would invest 433,452 in China Securities 800 on August 28, 2024 and sell it today you would lose (18,979) from holding China Securities 800 or give up 4.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Securities 800 vs. Suzhou Douson Drilling
Performance |
| Timeline |
China Securities and Suzhou Douson Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
Suzhou Douson Drilling
Pair trading matchups for Suzhou Douson
Pair Trading with China Securities and Suzhou Douson
The main advantage of trading using opposite China Securities and Suzhou Douson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities 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 Securities vs. Shandong Ruifeng Chemical | China Securities vs. Zhongtong Guomai Communication | China Securities vs. Gome Telecom Equipment | China Securities vs. Dymatic Chemicals |
| Suzhou Douson vs. Zhejiang Kingland Pipeline | Suzhou Douson vs. Xiangyang Automobile Bearing | Suzhou Douson vs. COL Digital Publishing | Suzhou Douson vs. Suzhou Novoprotein Scientific |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Positions Ratings 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 | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |