Correlation Between Guangzhou Haozhi and Soochow Suzhou
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By analyzing existing cross correlation between Guangzhou Haozhi Industrial and Soochow Suzhou Industrial, you can compare the effects of market volatilities on Guangzhou Haozhi and Soochow Suzhou 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 Guangzhou Haozhi with a short position of Soochow Suzhou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Haozhi and Soochow Suzhou.
Diversification Opportunities for Guangzhou Haozhi and Soochow Suzhou
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Guangzhou and Soochow is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Haozhi Industrial and Soochow Suzhou Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Soochow Suzhou Industrial and Guangzhou Haozhi 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 Guangzhou Haozhi Industrial are associated (or correlated) with Soochow Suzhou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Soochow Suzhou Industrial has no effect on the direction of Guangzhou Haozhi i.e., Guangzhou Haozhi and Soochow Suzhou go up and down completely randomly.
Pair Corralation between Guangzhou Haozhi and Soochow Suzhou
Assuming the 90 days trading horizon Guangzhou Haozhi Industrial is expected to generate 5.35 times more return on investment than Soochow Suzhou. However, Guangzhou Haozhi is 5.35 times more volatile than Soochow Suzhou Industrial. It trades about 0.15 of its potential returns per unit of risk. Soochow Suzhou Industrial is currently generating about 0.46 per unit of risk. If you would invest 2,082 in Guangzhou Haozhi Industrial on October 28, 2024 and sell it today you would earn a total of 249.00 from holding Guangzhou Haozhi Industrial or generate 11.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Haozhi Industrial vs. Soochow Suzhou Industrial
Performance |
| Timeline |
| Guangzhou Haozhi Ind |
| Soochow Suzhou Industrial |
Guangzhou Haozhi and Soochow Suzhou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Haozhi and Soochow Suzhou
The main advantage of trading using opposite Guangzhou Haozhi and Soochow Suzhou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Haozhi position performs unexpectedly, Soochow Suzhou 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 Soochow Suzhou will offset losses from the drop in Soochow Suzhou's long position.| Guangzhou Haozhi vs. Vats Liquor Chain | Guangzhou Haozhi vs. Dongfeng Automobile Co | Guangzhou Haozhi vs. Duzhe Publishing Media | Guangzhou Haozhi vs. Changjiang Publishing Media |
| Soochow Suzhou vs. Industrial and Commercial | Soochow Suzhou vs. Kweichow Moutai Co | Soochow Suzhou vs. Agricultural Bank of | Soochow Suzhou vs. China Mobile Limited |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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