Correlation Between Hengerda New and Suzhou Mingzhi
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By analyzing existing cross correlation between Hengerda New Materials and Suzhou Mingzhi Technology, you can compare the effects of market volatilities on Hengerda New and Suzhou Mingzhi 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 Hengerda New with a short position of Suzhou Mingzhi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hengerda New and Suzhou Mingzhi.
Diversification Opportunities for Hengerda New and Suzhou Mingzhi
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hengerda and Suzhou is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Hengerda New Materials and Suzhou Mingzhi Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Mingzhi Technology and Hengerda 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 Hengerda New Materials are associated (or correlated) with Suzhou Mingzhi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou Mingzhi Technology has no effect on the direction of Hengerda New i.e., Hengerda New and Suzhou Mingzhi go up and down completely randomly.
Pair Corralation between Hengerda New and Suzhou Mingzhi
Assuming the 90 days trading horizon Hengerda New Materials is expected to generate 0.98 times more return on investment than Suzhou Mingzhi. However, Hengerda New Materials is 1.02 times less risky than Suzhou Mingzhi. It trades about 0.02 of its potential returns per unit of risk. Suzhou Mingzhi Technology is currently generating about -0.01 per unit of risk. If you would invest 2,795 in Hengerda New Materials on September 13, 2024 and sell it today you would earn a total of 198.00 from holding Hengerda New Materials or generate 7.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.79% |
| Values | Daily Returns |
Hengerda New Materials vs. Suzhou Mingzhi Technology
Performance |
| Timeline |
| Hengerda New Materials |
| Suzhou Mingzhi Technology |
Hengerda New and Suzhou Mingzhi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hengerda New and Suzhou Mingzhi
The main advantage of trading using opposite Hengerda New and Suzhou Mingzhi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hengerda New position performs unexpectedly, Suzhou Mingzhi 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 Mingzhi will offset losses from the drop in Suzhou Mingzhi's long position.| Hengerda New vs. SUNSEA Telecommunications Co | Hengerda New vs. Hunan Mendale Hometextile | Hengerda New vs. Fiberhome Telecommunication Technologies | Hengerda New vs. Xiamen Goldenhome Co |
| Suzhou Mingzhi vs. Ming Yang Smart | Suzhou Mingzhi vs. 159681 | Suzhou Mingzhi vs. 159005 | Suzhou Mingzhi vs. Loctek Ergonomic Technology |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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