Correlation Between Malion New and Suzhou Industrial
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By analyzing existing cross correlation between Malion New Materials and Suzhou Industrial Park, you can compare the effects of market volatilities on Malion New and Suzhou Industrial 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 Malion New with a short position of Suzhou Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Malion New and Suzhou Industrial.
Diversification Opportunities for Malion New and Suzhou Industrial
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Malion and Suzhou is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Malion New Materials and Suzhou Industrial Park in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Industrial Park and Malion New 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 Malion New Materials are associated (or correlated) with Suzhou Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou Industrial Park has no effect on the direction of Malion New i.e., Malion New and Suzhou Industrial go up and down completely randomly.
Pair Corralation between Malion New and Suzhou Industrial
Assuming the 90 days trading horizon Malion New Materials is expected to under-perform the Suzhou Industrial. But the stock apears to be less risky and, when comparing its historical volatility, Malion New Materials is 2.54 times less risky than Suzhou Industrial. The stock trades about -0.49 of its potential returns per unit of risk. The Suzhou Industrial Park is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 985.00 in Suzhou Industrial Park on October 11, 2024 and sell it today you would earn a total of 66.00 from holding Suzhou Industrial Park or generate 6.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Malion New Materials vs. Suzhou Industrial Park
Performance |
| Timeline |
| Malion New Materials |
| Suzhou Industrial Park |
Malion New and Suzhou Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Malion New and Suzhou Industrial
The main advantage of trading using opposite Malion New and Suzhou Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Malion New position performs unexpectedly, Suzhou Industrial 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 Suzhou Industrial will offset losses from the drop in Suzhou Industrial's long position.| Malion New vs. Penyao Environmental Protection | Malion New vs. Tianjin Capital Environmental | Malion New vs. Qiaoyin Environmental Tech | Malion New vs. Ningbo Fangzheng Automobile |
| Suzhou Industrial vs. Jiangsu Jinling Sports | Suzhou Industrial vs. Eyebright Medical Technology | Suzhou Industrial vs. Fujian Newland Computer | Suzhou Industrial vs. Bank of Communications |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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