Correlation Between Jiujiang Shanshui and Suzhou Douson
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By analyzing existing cross correlation between Jiujiang Shanshui Technology and Suzhou Douson Drilling, you can compare the effects of market volatilities on Jiujiang Shanshui 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 Jiujiang Shanshui with a short position of Suzhou Douson. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiujiang Shanshui and Suzhou Douson.
Diversification Opportunities for Jiujiang Shanshui and Suzhou Douson
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jiujiang and Suzhou is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Jiujiang Shanshui 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 Jiujiang Shanshui 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 Jiujiang Shanshui 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 Jiujiang Shanshui i.e., Jiujiang Shanshui and Suzhou Douson go up and down completely randomly.
Pair Corralation between Jiujiang Shanshui and Suzhou Douson
Assuming the 90 days trading horizon Jiujiang Shanshui Technology is expected to generate 0.73 times more return on investment than Suzhou Douson. However, Jiujiang Shanshui Technology is 1.38 times less risky than Suzhou Douson. It trades about 0.05 of its potential returns per unit of risk. Suzhou Douson Drilling is currently generating about 0.0 per unit of risk. If you would invest 1,585 in Jiujiang Shanshui Technology on August 28, 2024 and sell it today you would earn a total of 30.00 from holding Jiujiang Shanshui Technology or generate 1.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiujiang Shanshui Technology vs. Suzhou Douson Drilling
Performance |
| Timeline |
| Jiujiang Shanshui |
| Suzhou Douson Drilling |
Jiujiang Shanshui and Suzhou Douson Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiujiang Shanshui and Suzhou Douson
The main advantage of trading using opposite Jiujiang Shanshui and Suzhou Douson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiujiang Shanshui 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.| Jiujiang Shanshui vs. Zijin Mining Group | Jiujiang Shanshui vs. Baoshan Iron Steel | Jiujiang Shanshui vs. Shandong Gold Mining | Jiujiang Shanshui vs. Rongsheng Petrochemical Co |
| Suzhou Douson vs. Dhc Software Co | Suzhou Douson vs. Jinhe Biotechnology Co | Suzhou Douson vs. Changchun UP Optotech | Suzhou Douson vs. Shandong Polymer Biochemicals |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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