Correlation Between Soochow Suzhou and Jinsanjiang Silicon
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By analyzing existing cross correlation between Soochow Suzhou Industrial and Jinsanjiang Silicon Material, you can compare the effects of market volatilities on Soochow Suzhou and Jinsanjiang Silicon 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 Jinsanjiang Silicon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Soochow Suzhou and Jinsanjiang Silicon.
Diversification Opportunities for Soochow Suzhou and Jinsanjiang Silicon
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Soochow and Jinsanjiang is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Soochow Suzhou Industrial and Jinsanjiang Silicon Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinsanjiang Silicon 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 Jinsanjiang Silicon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinsanjiang Silicon has no effect on the direction of Soochow Suzhou i.e., Soochow Suzhou and Jinsanjiang Silicon go up and down completely randomly.
Pair Corralation between Soochow Suzhou and Jinsanjiang Silicon
Assuming the 90 days trading horizon Soochow Suzhou is expected to generate 4.45 times less return on investment than Jinsanjiang Silicon. But when comparing it to its historical volatility, Soochow Suzhou Industrial is 5.64 times less risky than Jinsanjiang Silicon. It trades about 0.07 of its potential returns per unit of risk. Jinsanjiang Silicon Material is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 892.00 in Jinsanjiang Silicon Material on October 18, 2024 and sell it today you would earn a total of 156.00 from holding Jinsanjiang Silicon Material or generate 17.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Soochow Suzhou Industrial vs. Jinsanjiang Silicon Material
Performance |
| Timeline |
| Soochow Suzhou Industrial |
| Jinsanjiang Silicon |
Soochow Suzhou and Jinsanjiang Silicon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Soochow Suzhou and Jinsanjiang Silicon
The main advantage of trading using opposite Soochow Suzhou and Jinsanjiang Silicon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Soochow Suzhou position performs unexpectedly, Jinsanjiang Silicon 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 Jinsanjiang Silicon will offset losses from the drop in Jinsanjiang Silicon's long position.| Soochow Suzhou vs. Shanghai Shibei Hi Tech | Soochow Suzhou vs. Suzhou Mingzhi Technology | Soochow Suzhou vs. Beijing YanDong MicroElectronic | Soochow Suzhou vs. Kuang Chi Technologies |
| Jinsanjiang Silicon vs. Soochow Suzhou Industrial | Jinsanjiang Silicon vs. Gem Year Industrial Co | Jinsanjiang Silicon vs. Marssenger Kitchenware Co | Jinsanjiang Silicon vs. Bosera CMSK Industrial |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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