Correlation Between Super Dragon and Suzhou Xingye
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By analyzing existing cross correlation between Super Dragon Engineering Plastics and Suzhou Xingye Material, you can compare the effects of market volatilities on Super Dragon and Suzhou Xingye 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 Super Dragon with a short position of Suzhou Xingye. Check out your portfolio center. Please also check ongoing floating volatility patterns of Super Dragon and Suzhou Xingye.
Diversification Opportunities for Super Dragon and Suzhou Xingye
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Super and Suzhou is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Super Dragon Engineering Plast and Suzhou Xingye Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Xingye Material and Super Dragon 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 Super Dragon Engineering Plastics are associated (or correlated) with Suzhou Xingye. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou Xingye Material has no effect on the direction of Super Dragon i.e., Super Dragon and Suzhou Xingye go up and down completely randomly.
Pair Corralation between Super Dragon and Suzhou Xingye
Assuming the 90 days trading horizon Super Dragon is expected to generate 27.33 times less return on investment than Suzhou Xingye. But when comparing it to its historical volatility, Super Dragon Engineering Plastics is 1.22 times less risky than Suzhou Xingye. It trades about 0.01 of its potential returns per unit of risk. Suzhou Xingye Material is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 836.00 in Suzhou Xingye Material on October 25, 2024 and sell it today you would earn a total of 364.00 from holding Suzhou Xingye Material or generate 43.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Super Dragon Engineering Plast vs. Suzhou Xingye Material
Performance |
| Timeline |
| Super Dragon Enginee |
| Suzhou Xingye Material |
Super Dragon and Suzhou Xingye Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Super Dragon and Suzhou Xingye
The main advantage of trading using opposite Super Dragon and Suzhou Xingye positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Super Dragon position performs unexpectedly, Suzhou Xingye 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 Xingye will offset losses from the drop in Suzhou Xingye's long position.| Super Dragon vs. Kweichow Moutai Co | Super Dragon vs. Contemporary Amperex Technology | Super Dragon vs. Beijing Roborock Technology | Super Dragon vs. BYD Co Ltd |
| Suzhou Xingye vs. Zijin Mining Group | Suzhou Xingye vs. Wanhua Chemical Group | Suzhou Xingye vs. Baoshan Iron Steel | Suzhou Xingye vs. Rongsheng Petrochemical 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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