Correlation Between Suzhou Industrial and Lingyuan Iron
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By analyzing existing cross correlation between Suzhou Industrial Park and Lingyuan Iron Steel, you can compare the effects of market volatilities on Suzhou Industrial and Lingyuan Iron 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 Lingyuan Iron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Industrial and Lingyuan Iron.
Diversification Opportunities for Suzhou Industrial and Lingyuan Iron
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Suzhou and Lingyuan is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Industrial Park and Lingyuan Iron Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lingyuan Iron Steel 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 Lingyuan Iron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lingyuan Iron Steel has no effect on the direction of Suzhou Industrial i.e., Suzhou Industrial and Lingyuan Iron go up and down completely randomly.
Pair Corralation between Suzhou Industrial and Lingyuan Iron
Assuming the 90 days trading horizon Suzhou Industrial Park is expected to under-perform the Lingyuan Iron. In addition to that, Suzhou Industrial is 2.41 times more volatile than Lingyuan Iron Steel. It trades about -0.17 of its total potential returns per unit of risk. Lingyuan Iron Steel is currently generating about -0.07 per unit of volatility. If you would invest 179.00 in Lingyuan Iron Steel on November 1, 2024 and sell it today you would lose (6.00) from holding Lingyuan Iron Steel or give up 3.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Suzhou Industrial Park vs. Lingyuan Iron Steel
Performance |
| Timeline |
| Suzhou Industrial Park |
| Lingyuan Iron Steel |
Suzhou Industrial and Lingyuan Iron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Industrial and Lingyuan Iron
The main advantage of trading using opposite Suzhou Industrial and Lingyuan Iron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Industrial position performs unexpectedly, Lingyuan Iron 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 Lingyuan Iron will offset losses from the drop in Lingyuan Iron's long position.| Suzhou Industrial vs. Industrial and Commercial | Suzhou Industrial vs. China Construction Bank | Suzhou Industrial vs. Bank of China | Suzhou Industrial vs. Agricultural Bank of |
| Lingyuan Iron vs. Uxi Unicomp Technology | Lingyuan Iron vs. Suzhou Industrial Park | Lingyuan Iron vs. Guangzhou KingTeller Technology | Lingyuan Iron vs. Montage Technology 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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