Correlation Between Suzhou Industrial and Shanghai Yanpu
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By analyzing existing cross correlation between Suzhou Industrial Park and Shanghai Yanpu Metal, you can compare the effects of market volatilities on Suzhou Industrial and Shanghai Yanpu 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 Yanpu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Industrial and Shanghai Yanpu.
Diversification Opportunities for Suzhou Industrial and Shanghai Yanpu
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Suzhou and Shanghai is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Industrial Park and Shanghai Yanpu Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Yanpu 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 Shanghai Yanpu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Yanpu Metal has no effect on the direction of Suzhou Industrial i.e., Suzhou Industrial and Shanghai Yanpu go up and down completely randomly.
Pair Corralation between Suzhou Industrial and Shanghai Yanpu
Assuming the 90 days trading horizon Suzhou Industrial Park is expected to generate 1.28 times more return on investment than Shanghai Yanpu. However, Suzhou Industrial is 1.28 times more volatile than Shanghai Yanpu Metal. It trades about 0.02 of its potential returns per unit of risk. Shanghai Yanpu Metal is currently generating about 0.01 per unit of risk. If you would invest 859.00 in Suzhou Industrial Park on October 16, 2024 and sell it today you would earn a total of 42.00 from holding Suzhou Industrial Park or generate 4.89% return on investment 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 Yanpu Metal
Performance |
| Timeline |
| Suzhou Industrial Park |
| Shanghai Yanpu Metal |
Suzhou Industrial and Shanghai Yanpu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Industrial and Shanghai Yanpu
The main advantage of trading using opposite Suzhou Industrial and Shanghai Yanpu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Industrial position performs unexpectedly, Shanghai Yanpu 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 Yanpu will offset losses from the drop in Shanghai Yanpu'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 |
| Shanghai Yanpu vs. Guangdong Shenglu Telecommunication | Shanghai Yanpu vs. Suzhou Industrial Park | Shanghai Yanpu vs. Allwin Telecommunication Co | Shanghai Yanpu vs. Sunwave Communications 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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