Correlation Between Suzhou Fushilai and Shenzhen
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By analyzing existing cross correlation between Suzhou Fushilai Pharmaceutical and Shenzhen AV Display Co, you can compare the effects of market volatilities on Suzhou Fushilai and Shenzhen 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 Suzhou Fushilai with a short position of Shenzhen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Fushilai and Shenzhen.
Diversification Opportunities for Suzhou Fushilai and Shenzhen
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Suzhou and Shenzhen is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Fushilai Pharmaceutical and Shenzhen AV Display Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen AV Display and Suzhou Fushilai 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 Suzhou Fushilai Pharmaceutical are associated (or correlated) with Shenzhen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen AV Display has no effect on the direction of Suzhou Fushilai i.e., Suzhou Fushilai and Shenzhen go up and down completely randomly.
Pair Corralation between Suzhou Fushilai and Shenzhen
Assuming the 90 days trading horizon Suzhou Fushilai Pharmaceutical is expected to generate 0.65 times more return on investment than Shenzhen. However, Suzhou Fushilai Pharmaceutical is 1.55 times less risky than Shenzhen. It trades about -0.2 of its potential returns per unit of risk. Shenzhen AV Display Co is currently generating about -0.2 per unit of risk. If you would invest 2,485 in Suzhou Fushilai Pharmaceutical on October 25, 2024 and sell it today you would lose (203.00) from holding Suzhou Fushilai Pharmaceutical or give up 8.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Suzhou Fushilai Pharmaceutical vs. Shenzhen AV Display Co
Performance |
| Timeline |
| Suzhou Fushilai Phar |
| Shenzhen AV Display |
Suzhou Fushilai and Shenzhen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Fushilai and Shenzhen
The main advantage of trading using opposite Suzhou Fushilai and Shenzhen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Fushilai position performs unexpectedly, Shenzhen 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 Shenzhen will offset losses from the drop in Shenzhen's long position.| Suzhou Fushilai vs. Xiangyang Automobile Bearing | Suzhou Fushilai vs. CareRay Digital Medical | Suzhou Fushilai vs. Fiberhome Telecommunication Technologies | Suzhou Fushilai vs. Zhongzhu Medical Holdings |
| Shenzhen vs. Digiwin Software Co | Shenzhen vs. Uxi Unicomp Technology | Shenzhen vs. Wondershare Technology Co | Shenzhen vs. Soyea Technology 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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