Correlation Between Soochow Suzhou and Guangzhou Haozhi
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By analyzing existing cross correlation between Soochow Suzhou Industrial and Guangzhou Haozhi Industrial, you can compare the effects of market volatilities on Soochow Suzhou and Guangzhou Haozhi 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 Guangzhou Haozhi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Soochow Suzhou and Guangzhou Haozhi.
Diversification Opportunities for Soochow Suzhou and Guangzhou Haozhi
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Soochow and Guangzhou is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Soochow Suzhou Industrial and Guangzhou Haozhi Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Haozhi Ind 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 Guangzhou Haozhi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Haozhi Ind has no effect on the direction of Soochow Suzhou i.e., Soochow Suzhou and Guangzhou Haozhi go up and down completely randomly.
Pair Corralation between Soochow Suzhou and Guangzhou Haozhi
Assuming the 90 days trading horizon Soochow Suzhou is expected to generate 1.79 times less return on investment than Guangzhou Haozhi. But when comparing it to its historical volatility, Soochow Suzhou Industrial is 5.35 times less risky than Guangzhou Haozhi. It trades about 0.46 of its potential returns per unit of risk. Guangzhou Haozhi Industrial is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 2,082 in Guangzhou Haozhi Industrial on October 28, 2024 and sell it today you would earn a total of 249.00 from holding Guangzhou Haozhi Industrial or generate 11.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Soochow Suzhou Industrial vs. Guangzhou Haozhi Industrial
Performance |
| Timeline |
| Soochow Suzhou Industrial |
| Guangzhou Haozhi Ind |
Soochow Suzhou and Guangzhou Haozhi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Soochow Suzhou and Guangzhou Haozhi
The main advantage of trading using opposite Soochow Suzhou and Guangzhou Haozhi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Soochow Suzhou position performs unexpectedly, Guangzhou Haozhi 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 Guangzhou Haozhi will offset losses from the drop in Guangzhou Haozhi's long position.| Soochow Suzhou vs. Industrial and Commercial | Soochow Suzhou vs. Kweichow Moutai Co | Soochow Suzhou vs. Agricultural Bank of | Soochow Suzhou vs. China Mobile Limited |
| Guangzhou Haozhi vs. Vats Liquor Chain | Guangzhou Haozhi vs. Dongfeng Automobile Co | Guangzhou Haozhi vs. Duzhe Publishing Media | Guangzhou Haozhi vs. Changjiang Publishing Media |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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