Correlation Between King Strong and Suzhou Douson
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By analyzing existing cross correlation between King Strong New Material and Suzhou Douson Drilling, you can compare the effects of market volatilities on King Strong and Suzhou Douson 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 King Strong with a short position of Suzhou Douson. Check out your portfolio center. Please also check ongoing floating volatility patterns of King Strong and Suzhou Douson.
Diversification Opportunities for King Strong and Suzhou Douson
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between King and Suzhou is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding King Strong New Material and Suzhou Douson Drilling in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Douson Drilling and King Strong 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 King Strong New Material are associated (or correlated) with Suzhou Douson. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou Douson Drilling has no effect on the direction of King Strong i.e., King Strong and Suzhou Douson go up and down completely randomly.
Pair Corralation between King Strong and Suzhou Douson
Assuming the 90 days trading horizon King Strong New Material is expected to under-perform the Suzhou Douson. But the stock apears to be less risky and, when comparing its historical volatility, King Strong New Material is 1.12 times less risky than Suzhou Douson. The stock trades about -0.32 of its potential returns per unit of risk. The Suzhou Douson Drilling is currently generating about -0.11 of returns per unit of risk over similar time horizon. If you would invest 2,765 in Suzhou Douson Drilling on October 11, 2024 and sell it today you would lose (246.00) from holding Suzhou Douson Drilling or give up 8.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
King Strong New Material vs. Suzhou Douson Drilling
Performance |
| Timeline |
| King Strong New |
| Suzhou Douson Drilling |
King Strong and Suzhou Douson Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with King Strong and Suzhou Douson
The main advantage of trading using opposite King Strong and Suzhou Douson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if King Strong position performs unexpectedly, Suzhou Douson 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 Douson will offset losses from the drop in Suzhou Douson's long position.| King Strong vs. Shenzhen Silver Basis | King Strong vs. BTG Hotels Group | King Strong vs. Huatian Hotel Group | King Strong vs. Uroica Mining Safety |
| Suzhou Douson vs. King Strong New Material | Suzhou Douson vs. Sportsoul Co Ltd | Suzhou Douson vs. Jinsanjiang Silicon Material | Suzhou Douson vs. Orinko Advanced Plastics |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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