Correlation Between Cangzhou Mingzhu and Suzhou Xingye
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By analyzing existing cross correlation between Cangzhou Mingzhu Plastic and Suzhou Xingye Material, you can compare the effects of market volatilities on Cangzhou Mingzhu and Suzhou Xingye 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 Cangzhou Mingzhu with a short position of Suzhou Xingye. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cangzhou Mingzhu and Suzhou Xingye.
Diversification Opportunities for Cangzhou Mingzhu and Suzhou Xingye
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Cangzhou and Suzhou is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Cangzhou Mingzhu Plastic and Suzhou Xingye Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Xingye Material and Cangzhou Mingzhu 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 Cangzhou Mingzhu Plastic are associated (or correlated) with Suzhou Xingye. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou Xingye Material has no effect on the direction of Cangzhou Mingzhu i.e., Cangzhou Mingzhu and Suzhou Xingye go up and down completely randomly.
Pair Corralation between Cangzhou Mingzhu and Suzhou Xingye
Assuming the 90 days trading horizon Cangzhou Mingzhu Plastic is expected to under-perform the Suzhou Xingye. But the stock apears to be less risky and, when comparing its historical volatility, Cangzhou Mingzhu Plastic is 1.89 times less risky than Suzhou Xingye. The stock trades about -0.02 of its potential returns per unit of risk. The Suzhou Xingye Material is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 846.00 in Suzhou Xingye Material on August 29, 2024 and sell it today you would earn a total of 60.00 from holding Suzhou Xingye Material or generate 7.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cangzhou Mingzhu Plastic vs. Suzhou Xingye Material
Performance |
| Timeline |
| Cangzhou Mingzhu Plastic |
| Suzhou Xingye Material |
Cangzhou Mingzhu and Suzhou Xingye Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cangzhou Mingzhu and Suzhou Xingye
The main advantage of trading using opposite Cangzhou Mingzhu and Suzhou Xingye positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cangzhou Mingzhu position performs unexpectedly, Suzhou Xingye 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 Xingye will offset losses from the drop in Suzhou Xingye's long position.| Cangzhou Mingzhu vs. Zhejiang Kingland Pipeline | Cangzhou Mingzhu vs. COL Digital Publishing | Cangzhou Mingzhu vs. Suzhou Novoprotein Scientific | Cangzhou Mingzhu vs. Xiangyang Automobile Bearing |
| Suzhou Xingye vs. Guosheng Financial Holding | Suzhou Xingye vs. Industrial Bank Co | Suzhou Xingye vs. HeBei Jinniu Chemical | Suzhou Xingye vs. Jilin Chemical Fibre |
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.
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