Correlation Between Hunan Mendale and Suzhou Douson
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By analyzing existing cross correlation between Hunan Mendale Hometextile and Suzhou Douson Drilling, you can compare the effects of market volatilities on Hunan Mendale 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 Hunan Mendale with a short position of Suzhou Douson. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunan Mendale and Suzhou Douson.
Diversification Opportunities for Hunan Mendale and Suzhou Douson
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hunan and Suzhou is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Hunan Mendale Hometextile 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 Hunan Mendale 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 Hunan Mendale Hometextile 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 Hunan Mendale i.e., Hunan Mendale and Suzhou Douson go up and down completely randomly.
Pair Corralation between Hunan Mendale and Suzhou Douson
Assuming the 90 days trading horizon Hunan Mendale Hometextile is expected to under-perform the Suzhou Douson. In addition to that, Hunan Mendale is 1.19 times more volatile than Suzhou Douson Drilling. It trades about -0.03 of its total potential returns per unit of risk. Suzhou Douson Drilling is currently generating about 0.14 per unit of volatility. If you would invest 2,242 in Suzhou Douson Drilling on September 25, 2024 and sell it today you would earn a total of 216.00 from holding Suzhou Douson Drilling or generate 9.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hunan Mendale Hometextile vs. Suzhou Douson Drilling
Performance |
| Timeline |
| Hunan Mendale Hometextile |
| Suzhou Douson Drilling |
Hunan Mendale and Suzhou Douson Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunan Mendale and Suzhou Douson
The main advantage of trading using opposite Hunan Mendale and Suzhou Douson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunan Mendale 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.| Hunan Mendale vs. Cambricon Technologies Corp | Hunan Mendale vs. Loongson Technology Corp | Hunan Mendale vs. Shenzhen Fortune Trend | Hunan Mendale vs. Chongqing Road Bridge |
| Suzhou Douson vs. Zhejiang Kingland Pipeline | Suzhou Douson vs. BeiGene | Suzhou Douson vs. Easyhome New Retail | Suzhou Douson vs. ZTE Corp |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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