Correlation Between Suzhou Industrial and Shanghai Yaoji
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By analyzing existing cross correlation between Suzhou Industrial Park and Shanghai Yaoji Playing, you can compare the effects of market volatilities on Suzhou Industrial and Shanghai Yaoji 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 Shanghai Yaoji. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Industrial and Shanghai Yaoji.
Diversification Opportunities for Suzhou Industrial and Shanghai Yaoji
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Suzhou and Shanghai is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Industrial Park and Shanghai Yaoji Playing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Yaoji Playing 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 Shanghai Yaoji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Yaoji Playing has no effect on the direction of Suzhou Industrial i.e., Suzhou Industrial and Shanghai Yaoji go up and down completely randomly.
Pair Corralation between Suzhou Industrial and Shanghai Yaoji
Assuming the 90 days trading horizon Suzhou Industrial Park is expected to generate 1.22 times more return on investment than Shanghai Yaoji. However, Suzhou Industrial is 1.22 times more volatile than Shanghai Yaoji Playing. It trades about 0.02 of its potential returns per unit of risk. Shanghai Yaoji Playing is currently generating about -0.04 per unit of risk. If you would invest 972.00 in Suzhou Industrial Park on October 12, 2024 and sell it today you would lose (16.00) from holding Suzhou Industrial Park or give up 1.65% 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. Shanghai Yaoji Playing
Performance |
| Timeline |
| Suzhou Industrial Park |
| Shanghai Yaoji Playing |
Suzhou Industrial and Shanghai Yaoji Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Industrial and Shanghai Yaoji
The main advantage of trading using opposite Suzhou Industrial and Shanghai Yaoji positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Industrial position performs unexpectedly, Shanghai Yaoji 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 Shanghai Yaoji will offset losses from the drop in Shanghai Yaoji's long position.| Suzhou Industrial vs. Dr Peng Telecom | Suzhou Industrial vs. Mengtian Home Group | Suzhou Industrial vs. Markor International Home | Suzhou Industrial vs. Bank of Communications |
| Shanghai Yaoji vs. Anhui Jinhe Industrial | Shanghai Yaoji vs. Pengxin International Mining | Shanghai Yaoji vs. Jilin Chemical Fibre | Shanghai Yaoji vs. Suzhou Industrial Park |
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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