Correlation Between Soochow Suzhou and Jiangxi Naipu
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By analyzing existing cross correlation between Soochow Suzhou Industrial and Jiangxi Naipu Mining, you can compare the effects of market volatilities on Soochow Suzhou and Jiangxi Naipu 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 Jiangxi Naipu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Soochow Suzhou and Jiangxi Naipu.
Diversification Opportunities for Soochow Suzhou and Jiangxi Naipu
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Soochow and Jiangxi is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Soochow Suzhou Industrial and Jiangxi Naipu Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi Naipu Mining 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 Jiangxi Naipu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangxi Naipu Mining has no effect on the direction of Soochow Suzhou i.e., Soochow Suzhou and Jiangxi Naipu go up and down completely randomly.
Pair Corralation between Soochow Suzhou and Jiangxi Naipu
Assuming the 90 days trading horizon Soochow Suzhou Industrial is expected to generate 0.44 times more return on investment than Jiangxi Naipu. However, Soochow Suzhou Industrial is 2.3 times less risky than Jiangxi Naipu. It trades about 0.47 of its potential returns per unit of risk. Jiangxi Naipu Mining is currently generating about -0.15 per unit of risk. If you would invest 336.00 in Soochow Suzhou Industrial on October 29, 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Soochow Suzhou Industrial vs. Jiangxi Naipu Mining
Performance |
| Timeline |
| Soochow Suzhou Industrial |
| Jiangxi Naipu Mining |
Soochow Suzhou and Jiangxi Naipu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Soochow Suzhou and Jiangxi Naipu
The main advantage of trading using opposite Soochow Suzhou and Jiangxi Naipu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Soochow Suzhou position performs unexpectedly, Jiangxi Naipu 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 Jiangxi Naipu will offset losses from the drop in Jiangxi Naipu'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 |
| Jiangxi Naipu vs. Chinese Universe Publishing | Jiangxi Naipu vs. Offcn Education Technology | Jiangxi Naipu vs. Zhejiang Publishing Media | Jiangxi Naipu vs. Silkroad Visual Technology |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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