Correlation Between Shenzhen MYS and Soochow Suzhou
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By analyzing existing cross correlation between Shenzhen MYS Environmental and Soochow Suzhou Industrial, you can compare the effects of market volatilities on Shenzhen MYS 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 Shenzhen MYS with a short position of Soochow Suzhou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen MYS and Soochow Suzhou.
Diversification Opportunities for Shenzhen MYS and Soochow Suzhou
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Shenzhen and Soochow is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen MYS Environmental 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 Shenzhen MYS 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 Shenzhen MYS Environmental 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 Shenzhen MYS i.e., Shenzhen MYS and Soochow Suzhou go up and down completely randomly.
Pair Corralation between Shenzhen MYS and Soochow Suzhou
Assuming the 90 days trading horizon Shenzhen MYS Environmental is expected to generate 5.7 times more return on investment than Soochow Suzhou. However, Shenzhen MYS is 5.7 times more volatile than Soochow Suzhou Industrial. It trades about 0.02 of its potential returns per unit of risk. Soochow Suzhou Industrial is currently generating about -0.01 per unit of risk. If you would invest 315.00 in Shenzhen MYS Environmental on October 14, 2024 and sell it today you would earn a total of 0.00 from holding Shenzhen MYS Environmental or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen MYS Environmental vs. Soochow Suzhou Industrial
Performance |
| Timeline |
| Shenzhen MYS Environ |
| Soochow Suzhou Industrial |
Shenzhen MYS and Soochow Suzhou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen MYS and Soochow Suzhou
The main advantage of trading using opposite Shenzhen MYS and Soochow Suzhou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen MYS 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.| Shenzhen MYS vs. Songz Automobile Air | Shenzhen MYS vs. Gansu Jiu Steel | Shenzhen MYS vs. Haima Automobile Group | Shenzhen MYS vs. Telling Telecommunication Holding |
| 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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