Correlation Between Suzhou Industrial and Shenzhen Zhongzhuang
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By analyzing existing cross correlation between Suzhou Industrial Park and Shenzhen Zhongzhuang Construction, you can compare the effects of market volatilities on Suzhou Industrial and Shenzhen Zhongzhuang 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 Shenzhen Zhongzhuang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Industrial and Shenzhen Zhongzhuang.
Diversification Opportunities for Suzhou Industrial and Shenzhen Zhongzhuang
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Suzhou and Shenzhen is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Industrial Park and Shenzhen Zhongzhuang Construct in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Zhongzhuang 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 Shenzhen Zhongzhuang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Zhongzhuang has no effect on the direction of Suzhou Industrial i.e., Suzhou Industrial and Shenzhen Zhongzhuang go up and down completely randomly.
Pair Corralation between Suzhou Industrial and Shenzhen Zhongzhuang
Assuming the 90 days trading horizon Suzhou Industrial is expected to generate 6.07 times less return on investment than Shenzhen Zhongzhuang. In addition to that, Suzhou Industrial is 1.25 times more volatile than Shenzhen Zhongzhuang Construction. It trades about 0.04 of its total potential returns per unit of risk. Shenzhen Zhongzhuang Construction is currently generating about 0.27 per unit of volatility. If you would invest 181.00 in Shenzhen Zhongzhuang Construction on October 14, 2024 and sell it today you would earn a total of 141.00 from holding Shenzhen Zhongzhuang Construction or generate 77.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Suzhou Industrial Park vs. Shenzhen Zhongzhuang Construct
Performance |
| Timeline |
| Suzhou Industrial Park |
| Shenzhen Zhongzhuang |
Suzhou Industrial and Shenzhen Zhongzhuang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Industrial and Shenzhen Zhongzhuang
The main advantage of trading using opposite Suzhou Industrial and Shenzhen Zhongzhuang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Industrial position performs unexpectedly, Shenzhen Zhongzhuang 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 Shenzhen Zhongzhuang will offset losses from the drop in Shenzhen Zhongzhuang's long position.| Suzhou Industrial vs. Jointo Energy Investment | Suzhou Industrial vs. Henan Shuanghui Investment | Suzhou Industrial vs. Tieling Newcity Investment | Suzhou Industrial vs. Hubei Geoway Investment |
| Shenzhen Zhongzhuang vs. Tibet Huayu Mining | Shenzhen Zhongzhuang vs. Wuhan Yangtze Communication | Shenzhen Zhongzhuang vs. Sunwave Communications Co | Shenzhen Zhongzhuang 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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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