Correlation Between Soochow Suzhou and Shenzhen Kexin
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By analyzing existing cross correlation between Soochow Suzhou Industrial and Shenzhen Kexin Communication, you can compare the effects of market volatilities on Soochow Suzhou and Shenzhen Kexin 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 Kexin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Soochow Suzhou and Shenzhen Kexin.
Diversification Opportunities for Soochow Suzhou and Shenzhen Kexin
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Soochow and Shenzhen is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Soochow Suzhou Industrial and Shenzhen Kexin Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Kexin Commu 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 Kexin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Kexin Commu has no effect on the direction of Soochow Suzhou i.e., Soochow Suzhou and Shenzhen Kexin go up and down completely randomly.
Pair Corralation between Soochow Suzhou and Shenzhen Kexin
Assuming the 90 days trading horizon Soochow Suzhou Industrial is expected to generate 0.21 times more return on investment than Shenzhen Kexin. However, Soochow Suzhou Industrial is 4.83 times less risky than Shenzhen Kexin. It trades about 0.47 of its potential returns per unit of risk. Shenzhen Kexin Communication is currently generating about -0.03 per unit of risk. If you would invest 336.00 in Soochow Suzhou Industrial on October 30, 2024 and sell it today you would earn a total of 25.00 from holding Soochow Suzhou Industrial or generate 7.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Soochow Suzhou Industrial vs. Shenzhen Kexin Communication
Performance |
| Timeline |
| Soochow Suzhou Industrial |
| Shenzhen Kexin Commu |
Soochow Suzhou and Shenzhen Kexin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Soochow Suzhou and Shenzhen Kexin
The main advantage of trading using opposite Soochow Suzhou and Shenzhen Kexin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Soochow Suzhou position performs unexpectedly, Shenzhen Kexin 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 Kexin will offset losses from the drop in Shenzhen Kexin'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 |
| Shenzhen Kexin vs. Bus Online Co | Shenzhen Kexin vs. Holitech Technology Co | Shenzhen Kexin vs. Gome Telecom Equipment | Shenzhen Kexin vs. Cultural Investment Holdings |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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