Correlation Between Suzhou Industrial and Guangdong Jingyi
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By analyzing existing cross correlation between Suzhou Industrial Park and Guangdong Jingyi Metal, you can compare the effects of market volatilities on Suzhou Industrial and Guangdong Jingyi 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 Suzhou Industrial with a short position of Guangdong Jingyi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Industrial and Guangdong Jingyi.
Diversification Opportunities for Suzhou Industrial and Guangdong Jingyi
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Suzhou and Guangdong is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Industrial Park and Guangdong Jingyi Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Jingyi Metal and Suzhou Industrial 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 Suzhou Industrial Park are associated (or correlated) with Guangdong Jingyi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Jingyi Metal has no effect on the direction of Suzhou Industrial i.e., Suzhou Industrial and Guangdong Jingyi go up and down completely randomly.
Pair Corralation between Suzhou Industrial and Guangdong Jingyi
Assuming the 90 days trading horizon Suzhou Industrial Park is expected to generate 2.2 times more return on investment than Guangdong Jingyi. However, Suzhou Industrial is 2.2 times more volatile than Guangdong Jingyi Metal. It trades about 0.01 of its potential returns per unit of risk. Guangdong Jingyi Metal is currently generating about -0.36 per unit of risk. 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Suzhou Industrial Park vs. Guangdong Jingyi Metal
Performance |
| Timeline |
| Suzhou Industrial Park |
| Guangdong Jingyi Metal |
Suzhou Industrial and Guangdong Jingyi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Industrial and Guangdong Jingyi
The main advantage of trading using opposite Suzhou Industrial and Guangdong Jingyi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Industrial position performs unexpectedly, Guangdong Jingyi 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 Guangdong Jingyi will offset losses from the drop in Guangdong Jingyi's long position.| 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 |
| Guangdong Jingyi vs. Epoxy Base Electronic | Guangdong Jingyi vs. Shenzhen Clou Electronics | Guangdong Jingyi vs. Anhui Shiny Electronic | Guangdong Jingyi vs. Huasi Agricultural Development |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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