Correlation Between Changchun and Suzhou Douson
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By analyzing existing cross correlation between Changchun UP Optotech and Suzhou Douson Drilling, you can compare the effects of market volatilities on Changchun 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 Changchun with a short position of Suzhou Douson. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changchun and Suzhou Douson.
Diversification Opportunities for Changchun and Suzhou Douson
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Changchun and Suzhou is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Changchun UP Optotech 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 Changchun 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 Changchun UP Optotech 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 Changchun i.e., Changchun and Suzhou Douson go up and down completely randomly.
Pair Corralation between Changchun and Suzhou Douson
Assuming the 90 days trading horizon Changchun UP Optotech is expected to generate 1.5 times more return on investment than Suzhou Douson. However, Changchun is 1.5 times more volatile than Suzhou Douson Drilling. It trades about 0.11 of its potential returns per unit of risk. Suzhou Douson Drilling is currently generating about 0.0 per unit of risk. If you would invest 3,760 in Changchun UP Optotech on August 27, 2024 and sell it today you would earn a total of 366.00 from holding Changchun UP Optotech or generate 9.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changchun UP Optotech vs. Suzhou Douson Drilling
Performance |
| Timeline |
| Changchun UP Optotech |
| Suzhou Douson Drilling |
Changchun and Suzhou Douson Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changchun and Suzhou Douson
The main advantage of trading using opposite Changchun and Suzhou Douson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changchun 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.| Changchun vs. Zhengzhou Qianweiyangchu Food | Changchun vs. Shenzhen Centralcon Investment | Changchun vs. New Hope Dairy | Changchun vs. Nuode Investment Co |
| Suzhou Douson vs. Dhc Software Co | Suzhou Douson vs. Jinhe Biotechnology Co | Suzhou Douson vs. Changchun UP Optotech | Suzhou Douson vs. Shandong Polymer Biochemicals |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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