Correlation Between China Securities and Suzhou UIGreen
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Securities 800 and Suzhou UIGreen Micro, you can compare the effects of market volatilities on China Securities and Suzhou UIGreen 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 UIGreen. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and Suzhou UIGreen.
Diversification Opportunities for China Securities and Suzhou UIGreen
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Suzhou is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and Suzhou UIGreen Micro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou UIGreen Micro 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 UIGreen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou UIGreen Micro has no effect on the direction of China Securities i.e., China Securities and Suzhou UIGreen go up and down completely randomly.
Pair Corralation between China Securities and Suzhou UIGreen
Assuming the 90 days trading horizon China Securities 800 is expected to generate 0.38 times more return on investment than Suzhou UIGreen. However, China Securities 800 is 2.66 times less risky than Suzhou UIGreen. It trades about -0.1 of its potential returns per unit of risk. Suzhou UIGreen Micro is currently generating about -0.06 per unit of risk. If you would invest 444,814 in China Securities 800 on September 13, 2024 and sell it today you would lose (11,830) from holding China Securities 800 or give up 2.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Securities 800 vs. Suzhou UIGreen Micro
Performance |
| Timeline |
China Securities and Suzhou UIGreen Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
Suzhou UIGreen Micro
Pair trading matchups for Suzhou UIGreen
Pair Trading with China Securities and Suzhou UIGreen
The main advantage of trading using opposite China Securities and Suzhou UIGreen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, Suzhou UIGreen 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 UIGreen will offset losses from the drop in Suzhou UIGreen's long position.The idea behind China Securities 800 and Suzhou UIGreen Micro pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Suzhou UIGreen vs. Heren Health Co | Suzhou UIGreen vs. Vontron Technology Co | Suzhou UIGreen vs. Everjoy Health Group | Suzhou UIGreen vs. Kingsignal Technology 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |