Correlation Between Shenzhen Bingchuan and Soochow Suzhou
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By analyzing existing cross correlation between Shenzhen Bingchuan Network and Soochow Suzhou Industrial, you can compare the effects of market volatilities on Shenzhen Bingchuan 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 Shenzhen Bingchuan with a short position of Soochow Suzhou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Bingchuan and Soochow Suzhou.
Diversification Opportunities for Shenzhen Bingchuan and Soochow Suzhou
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Shenzhen and Soochow is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Bingchuan Network 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 Shenzhen Bingchuan 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 Shenzhen Bingchuan Network 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 Shenzhen Bingchuan i.e., Shenzhen Bingchuan and Soochow Suzhou go up and down completely randomly.
Pair Corralation between Shenzhen Bingchuan and Soochow Suzhou
Assuming the 90 days trading horizon Shenzhen Bingchuan Network is expected to generate 6.65 times more return on investment than Soochow Suzhou. However, Shenzhen Bingchuan is 6.65 times more volatile than Soochow Suzhou Industrial. It trades about 0.05 of its potential returns per unit of risk. Soochow Suzhou Industrial is currently generating about -0.01 per unit of risk. If you would invest 1,682 in Shenzhen Bingchuan Network on October 14, 2024 and sell it today you would earn a total of 125.00 from holding Shenzhen Bingchuan Network or generate 7.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Bingchuan Network vs. Soochow Suzhou Industrial
Performance |
| Timeline |
| Shenzhen Bingchuan |
| Soochow Suzhou Industrial |
Shenzhen Bingchuan and Soochow Suzhou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Bingchuan and Soochow Suzhou
The main advantage of trading using opposite Shenzhen Bingchuan and Soochow Suzhou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Bingchuan 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.| Shenzhen Bingchuan vs. Ningbo Jintian Copper | Shenzhen Bingchuan vs. Shanghai Yanpu Metal | Shenzhen Bingchuan vs. Dosilicon Co | Shenzhen Bingchuan vs. Hefei Metalforming Mach |
| Soochow Suzhou vs. Servyou Software Group | Soochow Suzhou vs. Holitech Technology Co | Soochow Suzhou vs. Hangzhou Pinming Software | Soochow Suzhou vs. Bingo Software 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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