Correlation Between Kailong High and Suzhou Douson
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By analyzing existing cross correlation between Kailong High Technology and Suzhou Douson Drilling, you can compare the effects of market volatilities on Kailong High 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 Kailong High with a short position of Suzhou Douson. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kailong High and Suzhou Douson.
Diversification Opportunities for Kailong High and Suzhou Douson
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Kailong and Suzhou is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Kailong High Technology 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 Kailong High 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 Kailong High Technology 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 Kailong High i.e., Kailong High and Suzhou Douson go up and down completely randomly.
Pair Corralation between Kailong High and Suzhou Douson
Assuming the 90 days trading horizon Kailong High is expected to generate 1.56 times less return on investment than Suzhou Douson. In addition to that, Kailong High is 1.25 times more volatile than Suzhou Douson Drilling. It trades about 0.05 of its total potential returns per unit of risk. Suzhou Douson Drilling is currently generating about 0.09 per unit of volatility. If you would invest 1,976 in Suzhou Douson Drilling on October 18, 2024 and sell it today you would earn a total of 750.00 from holding Suzhou Douson Drilling or generate 37.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kailong High Technology vs. Suzhou Douson Drilling
Performance |
| Timeline |
| Kailong High Technology |
| Suzhou Douson Drilling |
Kailong High and Suzhou Douson Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kailong High and Suzhou Douson
The main advantage of trading using opposite Kailong High and Suzhou Douson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kailong High 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.| Kailong High vs. Suzhou Douson Drilling | Kailong High vs. ButOne Information Corp | Kailong High vs. Zhejiang Kingland Pipeline | Kailong High vs. Everjoy Health Group |
| Suzhou Douson vs. Cowealth Medical China | Suzhou Douson vs. Zhonghong Pulin Medical | Suzhou Douson vs. Allmed Medical Products | Suzhou Douson vs. Touchstone International Medical |
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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