Correlation Between Soochow Suzhou and Shenzhen Glory
Specify exactly 2 symbols:
By analyzing existing cross correlation between Soochow Suzhou Industrial and Shenzhen Glory Medical, you can compare the effects of market volatilities on Soochow Suzhou and Shenzhen Glory 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 Soochow Suzhou with a short position of Shenzhen Glory. Check out your portfolio center. Please also check ongoing floating volatility patterns of Soochow Suzhou and Shenzhen Glory.
Diversification Opportunities for Soochow Suzhou and Shenzhen Glory
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Soochow and Shenzhen is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Soochow Suzhou Industrial and Shenzhen Glory Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Glory Medical and Soochow Suzhou 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 Soochow Suzhou Industrial are associated (or correlated) with Shenzhen Glory. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Glory Medical has no effect on the direction of Soochow Suzhou i.e., Soochow Suzhou and Shenzhen Glory go up and down completely randomly.
Pair Corralation between Soochow Suzhou and Shenzhen Glory
Assuming the 90 days trading horizon Soochow Suzhou Industrial is expected to generate 0.4 times more return on investment than Shenzhen Glory. However, Soochow Suzhou Industrial is 2.5 times less risky than Shenzhen Glory. It trades about -0.03 of its potential returns per unit of risk. Shenzhen Glory Medical is currently generating about -0.03 per unit of risk. If you would invest 435.00 in Soochow Suzhou Industrial on October 29, 2024 and sell it today you would lose (74.00) from holding Soochow Suzhou Industrial or give up 17.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Soochow Suzhou Industrial vs. Shenzhen Glory Medical
Performance |
| Timeline |
| Soochow Suzhou Industrial |
| Shenzhen Glory Medical |
Soochow Suzhou and Shenzhen Glory Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Soochow Suzhou and Shenzhen Glory
The main advantage of trading using opposite Soochow Suzhou and Shenzhen Glory positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Soochow Suzhou position performs unexpectedly, Shenzhen Glory 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 Glory will offset losses from the drop in Shenzhen Glory's long position.| Soochow Suzhou vs. Hua Xia Bank | Soochow Suzhou vs. King Strong New Material | Soochow Suzhou vs. Konfoong Materials International | Soochow Suzhou vs. Ping An Insurance |
| Shenzhen Glory vs. Nanxing Furniture Machinery | Shenzhen Glory vs. Union Semiconductor Co | Shenzhen Glory vs. Shenzhen Zhongzhuang Construction | Shenzhen Glory vs. Tjk Machinery Tianjin |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |