Correlation Between Suofeiya Home and Jiaozuo Wanfang
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By analyzing existing cross correlation between Suofeiya Home Collection and Jiaozuo Wanfang Aluminum, you can compare the effects of market volatilities on Suofeiya Home and Jiaozuo Wanfang 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 Suofeiya Home with a short position of Jiaozuo Wanfang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suofeiya Home and Jiaozuo Wanfang.
Diversification Opportunities for Suofeiya Home and Jiaozuo Wanfang
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Suofeiya and Jiaozuo is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Suofeiya Home Collection and Jiaozuo Wanfang Aluminum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiaozuo Wanfang Aluminum and Suofeiya Home 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 Suofeiya Home Collection are associated (or correlated) with Jiaozuo Wanfang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiaozuo Wanfang Aluminum has no effect on the direction of Suofeiya Home i.e., Suofeiya Home and Jiaozuo Wanfang go up and down completely randomly.
Pair Corralation between Suofeiya Home and Jiaozuo Wanfang
Assuming the 90 days trading horizon Suofeiya Home Collection is expected to under-perform the Jiaozuo Wanfang. But the stock apears to be less risky and, when comparing its historical volatility, Suofeiya Home Collection is 1.08 times less risky than Jiaozuo Wanfang. The stock trades about -0.28 of its potential returns per unit of risk. The Jiaozuo Wanfang Aluminum is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 680.00 in Jiaozuo Wanfang Aluminum on October 11, 2024 and sell it today you would earn a total of 4.00 from holding Jiaozuo Wanfang Aluminum or generate 0.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Suofeiya Home Collection vs. Jiaozuo Wanfang Aluminum
Performance |
| Timeline |
| Suofeiya Home Collection |
| Jiaozuo Wanfang Aluminum |
Suofeiya Home and Jiaozuo Wanfang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suofeiya Home and Jiaozuo Wanfang
The main advantage of trading using opposite Suofeiya Home and Jiaozuo Wanfang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suofeiya Home position performs unexpectedly, Jiaozuo Wanfang 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 Jiaozuo Wanfang will offset losses from the drop in Jiaozuo Wanfang's long position.| Suofeiya Home vs. Wuhan Yangtze Communication | Suofeiya Home vs. Guangdong Shenglu Telecommunication | Suofeiya Home vs. China Publishing Media | Suofeiya Home vs. Jiangsu Jinling Sports |
| Jiaozuo Wanfang vs. Tongyu Communication | Jiaozuo Wanfang vs. Wuhan Yangtze Communication | Jiaozuo Wanfang vs. Shenzhen Kexin Communication | Jiaozuo Wanfang vs. Mingchen Health 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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