Correlation Between Suzhou Industrial and Jiangsu Jinling
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By analyzing existing cross correlation between Suzhou Industrial Park and Jiangsu Jinling Sports, you can compare the effects of market volatilities on Suzhou Industrial and Jiangsu Jinling 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 Jiangsu Jinling. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Industrial and Jiangsu Jinling.
Diversification Opportunities for Suzhou Industrial and Jiangsu Jinling
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Suzhou and Jiangsu is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Industrial Park and Jiangsu Jinling Sports in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Jinling Sports 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 Jiangsu Jinling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Jinling Sports has no effect on the direction of Suzhou Industrial i.e., Suzhou Industrial and Jiangsu Jinling go up and down completely randomly.
Pair Corralation between Suzhou Industrial and Jiangsu Jinling
Assuming the 90 days trading horizon Suzhou Industrial Park is expected to generate 2.66 times more return on investment than Jiangsu Jinling. However, Suzhou Industrial is 2.66 times more volatile than Jiangsu Jinling Sports. It trades about 0.03 of its potential returns per unit of risk. Jiangsu Jinling Sports is currently generating about -0.05 per unit of risk. If you would invest 911.00 in Suzhou Industrial Park on October 26, 2024 and sell it today you would lose (5.00) from holding Suzhou Industrial Park or give up 0.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Suzhou Industrial Park vs. Jiangsu Jinling Sports
Performance |
| Timeline |
| Suzhou Industrial Park |
| Jiangsu Jinling Sports |
Suzhou Industrial and Jiangsu Jinling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Industrial and Jiangsu Jinling
The main advantage of trading using opposite Suzhou Industrial and Jiangsu Jinling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Industrial position performs unexpectedly, Jiangsu Jinling 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 Jiangsu Jinling will offset losses from the drop in Jiangsu Jinling's long position.| Suzhou Industrial vs. Shengda Mining Co | Suzhou Industrial vs. Jiangxi Hengda Hi Tech | Suzhou Industrial vs. Zijin Mining Group | Suzhou Industrial vs. Jilin Jlu Communication |
| Jiangsu Jinling vs. Ming Yang Smart | Jiangsu Jinling vs. 159681 | Jiangsu Jinling vs. 159005 | Jiangsu Jinling vs. Loctek Ergonomic Technology |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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