Correlation Between Sichuan Yahua and Suzhou Industrial
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By analyzing existing cross correlation between Sichuan Yahua Industrial and Suzhou Industrial Park, you can compare the effects of market volatilities on Sichuan Yahua and Suzhou Industrial 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 Sichuan Yahua with a short position of Suzhou Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sichuan Yahua and Suzhou Industrial.
Diversification Opportunities for Sichuan Yahua and Suzhou Industrial
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sichuan and Suzhou is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Sichuan Yahua Industrial and Suzhou Industrial Park in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Industrial Park and Sichuan Yahua 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 Sichuan Yahua Industrial are associated (or correlated) with Suzhou Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou Industrial Park has no effect on the direction of Sichuan Yahua i.e., Sichuan Yahua and Suzhou Industrial go up and down completely randomly.
Pair Corralation between Sichuan Yahua and Suzhou Industrial
Assuming the 90 days trading horizon Sichuan Yahua Industrial is expected to under-perform the Suzhou Industrial. But the stock apears to be less risky and, when comparing its historical volatility, Sichuan Yahua Industrial is 3.23 times less risky than Suzhou Industrial. The stock trades about -0.21 of its potential returns per unit of risk. The Suzhou Industrial Park is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 984.00 in Suzhou Industrial Park on October 15, 2024 and sell it today you would lose (28.00) from holding Suzhou Industrial Park or give up 2.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sichuan Yahua Industrial vs. Suzhou Industrial Park
Performance |
| Timeline |
| Sichuan Yahua Industrial |
| Suzhou Industrial Park |
Sichuan Yahua and Suzhou Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sichuan Yahua and Suzhou Industrial
The main advantage of trading using opposite Sichuan Yahua and Suzhou Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sichuan Yahua position performs unexpectedly, Suzhou Industrial 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 Industrial will offset losses from the drop in Suzhou Industrial's long position.| Sichuan Yahua vs. Shenzhen Bioeasy Biotechnology | Sichuan Yahua vs. Heilongjiang Publishing Media | Sichuan Yahua vs. Southern PublishingMedia Co | Sichuan Yahua vs. Changchun BCHT Biotechnology |
| Suzhou Industrial vs. Jiangsu Xinri E Vehicle | Suzhou Industrial vs. Jiangsu Jinling Sports | Suzhou Industrial vs. Songz Automobile Air | Suzhou Industrial vs. Shuhua Sports 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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