Correlation Between Shandong Sanyuan and Suzhou Oriental
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By analyzing existing cross correlation between Shandong Sanyuan Biotechnology and Suzhou Oriental Semiconductor, you can compare the effects of market volatilities on Shandong Sanyuan and Suzhou Oriental 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 Shandong Sanyuan with a short position of Suzhou Oriental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Sanyuan and Suzhou Oriental.
Diversification Opportunities for Shandong Sanyuan and Suzhou Oriental
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shandong and Suzhou is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Sanyuan Biotechnology and Suzhou Oriental Semiconductor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Oriental Semi and Shandong Sanyuan 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 Shandong Sanyuan Biotechnology are associated (or correlated) with Suzhou Oriental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou Oriental Semi has no effect on the direction of Shandong Sanyuan i.e., Shandong Sanyuan and Suzhou Oriental go up and down completely randomly.
Pair Corralation between Shandong Sanyuan and Suzhou Oriental
Assuming the 90 days trading horizon Shandong Sanyuan Biotechnology is expected to generate 0.58 times more return on investment than Suzhou Oriental. However, Shandong Sanyuan Biotechnology is 1.71 times less risky than Suzhou Oriental. It trades about 0.1 of its potential returns per unit of risk. Suzhou Oriental Semiconductor is currently generating about -0.1 per unit of risk. If you would invest 2,532 in Shandong Sanyuan Biotechnology on November 3, 2024 and sell it today you would earn a total of 69.00 from holding Shandong Sanyuan Biotechnology or generate 2.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Sanyuan Biotechnology vs. Suzhou Oriental Semiconductor
Performance |
| Timeline |
| Shandong Sanyuan Bio |
| Suzhou Oriental Semi |
Shandong Sanyuan and Suzhou Oriental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Sanyuan and Suzhou Oriental
The main advantage of trading using opposite Shandong Sanyuan and Suzhou Oriental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Sanyuan position performs unexpectedly, Suzhou Oriental 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 Oriental will offset losses from the drop in Suzhou Oriental's long position.| Shandong Sanyuan vs. Financial Street Holdings | Shandong Sanyuan vs. Tibet Huayu Mining | Shandong Sanyuan vs. Ping An Insurance | Shandong Sanyuan vs. Shenzhen Shenbao Industrial |
| Suzhou Oriental vs. BrightGene Bio Medical | Suzhou Oriental vs. Sino Medical Sciences | Suzhou Oriental vs. Jinhe Biotechnology Co | Suzhou Oriental vs. Wuhan Hvsen Biotechnology |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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