Correlation Between Suzhou SLAC and Chengdu Kanghua
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By analyzing existing cross correlation between Suzhou SLAC Precision and Chengdu Kanghua Biological, you can compare the effects of market volatilities on Suzhou SLAC and Chengdu Kanghua 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 SLAC with a short position of Chengdu Kanghua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou SLAC and Chengdu Kanghua.
Diversification Opportunities for Suzhou SLAC and Chengdu Kanghua
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Suzhou and Chengdu is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou SLAC Precision and Chengdu Kanghua Biological in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu Kanghua Biol and Suzhou SLAC 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 SLAC Precision are associated (or correlated) with Chengdu Kanghua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu Kanghua Biol has no effect on the direction of Suzhou SLAC i.e., Suzhou SLAC and Chengdu Kanghua go up and down completely randomly.
Pair Corralation between Suzhou SLAC and Chengdu Kanghua
Assuming the 90 days trading horizon Suzhou SLAC Precision is expected to generate 2.54 times more return on investment than Chengdu Kanghua. However, Suzhou SLAC is 2.54 times more volatile than Chengdu Kanghua Biological. It trades about 0.09 of its potential returns per unit of risk. Chengdu Kanghua Biological is currently generating about -0.26 per unit of risk. If you would invest 1,098 in Suzhou SLAC Precision on September 13, 2024 and sell it today you would earn a total of 94.00 from holding Suzhou SLAC Precision or generate 8.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Suzhou SLAC Precision vs. Chengdu Kanghua Biological
Performance |
| Timeline |
| Suzhou SLAC Precision |
| Chengdu Kanghua Biol |
Suzhou SLAC and Chengdu Kanghua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou SLAC and Chengdu Kanghua
The main advantage of trading using opposite Suzhou SLAC and Chengdu Kanghua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou SLAC position performs unexpectedly, Chengdu Kanghua 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 Chengdu Kanghua will offset losses from the drop in Chengdu Kanghua's long position.| Suzhou SLAC vs. Kuangda Technology Group | Suzhou SLAC vs. Citic Guoan Wine | Suzhou SLAC vs. Jiujiang Shanshui Technology | Suzhou SLAC vs. Guangzhou KingTeller Technology |
| Chengdu Kanghua vs. Bank of Suzhou | Chengdu Kanghua vs. Peoples Insurance of | Chengdu Kanghua vs. Yonyou Auto Information | Chengdu Kanghua vs. Longmaster Information Tech |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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