Correlation Between Hongrun Construction and Suzhou Douson
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By analyzing existing cross correlation between Hongrun Construction Group and Suzhou Douson Drilling, you can compare the effects of market volatilities on Hongrun Construction 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 Hongrun Construction with a short position of Suzhou Douson. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hongrun Construction and Suzhou Douson.
Diversification Opportunities for Hongrun Construction and Suzhou Douson
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hongrun and Suzhou is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Hongrun Construction Group 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 Hongrun Construction 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 Hongrun Construction Group 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 Hongrun Construction i.e., Hongrun Construction and Suzhou Douson go up and down completely randomly.
Pair Corralation between Hongrun Construction and Suzhou Douson
Assuming the 90 days trading horizon Hongrun Construction Group is expected to under-perform the Suzhou Douson. But the stock apears to be less risky and, when comparing its historical volatility, Hongrun Construction Group is 1.42 times less risky than Suzhou Douson. The stock trades about -0.01 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 3,100 in Suzhou Douson Drilling on August 25, 2024 and sell it today you would lose (860.00) from holding Suzhou Douson Drilling or give up 27.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hongrun Construction Group vs. Suzhou Douson Drilling
Performance |
| Timeline |
| Hongrun Construction |
| Suzhou Douson Drilling |
Hongrun Construction and Suzhou Douson Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hongrun Construction and Suzhou Douson
The main advantage of trading using opposite Hongrun Construction and Suzhou Douson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hongrun Construction 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.| Hongrun Construction vs. Ming Yang Smart | Hongrun Construction vs. 159681 | Hongrun Construction vs. 159005 | Hongrun Construction vs. Loctek Ergonomic Technology |
| Suzhou Douson vs. Guangzhou Jinyi Media | Suzhou Douson vs. Zhejiang Daily Media | Suzhou Douson vs. Qinghaihuading Industrial Co | Suzhou Douson vs. Chengtun Mining Group |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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