Correlation Between Super-Dragon Engineering and Shanghai Suochen
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By analyzing existing cross correlation between Super Dragon Engineering Plastics and Shanghai Suochen Information, you can compare the effects of market volatilities on Super-Dragon Engineering and Shanghai Suochen 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 Engineering with a short position of Shanghai Suochen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Super-Dragon Engineering and Shanghai Suochen.
Diversification Opportunities for Super-Dragon Engineering and Shanghai Suochen
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Super-Dragon and Shanghai is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Super Dragon Engineering Plast and Shanghai Suochen Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Suochen Inf and Super-Dragon Engineering 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 Shanghai Suochen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Suochen Inf has no effect on the direction of Super-Dragon Engineering i.e., Super-Dragon Engineering and Shanghai Suochen go up and down completely randomly.
Pair Corralation between Super-Dragon Engineering and Shanghai Suochen
Assuming the 90 days trading horizon Super-Dragon Engineering is expected to generate 5.08 times less return on investment than Shanghai Suochen. But when comparing it to its historical volatility, Super Dragon Engineering Plastics is 1.79 times less risky than Shanghai Suochen. It trades about 0.08 of its potential returns per unit of risk. Shanghai Suochen Information is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 5,263 in Shanghai Suochen Information on November 3, 2024 and sell it today you would earn a total of 913.00 from holding Shanghai Suochen Information or generate 17.35% 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. Shanghai Suochen Information
Performance |
| Timeline |
| Super-Dragon Engineering |
| Shanghai Suochen Inf |
Super-Dragon Engineering and Shanghai Suochen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Super-Dragon Engineering and Shanghai Suochen
The main advantage of trading using opposite Super-Dragon Engineering and Shanghai Suochen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Super-Dragon Engineering position performs unexpectedly, Shanghai Suochen 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 Shanghai Suochen will offset losses from the drop in Shanghai Suochen's long position.| Super-Dragon Engineering vs. Industrial and Commercial | Super-Dragon Engineering vs. Kweichow Moutai Co | Super-Dragon Engineering vs. Agricultural Bank of | Super-Dragon Engineering vs. China Mobile Limited |
| Shanghai Suochen vs. Tinavi Medical Technologies | Shanghai Suochen vs. Chison Medical Technologies | Shanghai Suochen vs. Zoje Resources Investment | Shanghai Suochen vs. APT 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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