Correlation Between Soochow Suzhou and Pengxin International
Specify exactly 2 symbols:
By analyzing existing cross correlation between Soochow Suzhou Industrial and Pengxin International Mining, you can compare the effects of market volatilities on Soochow Suzhou and Pengxin International 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 Pengxin International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Soochow Suzhou and Pengxin International.
Diversification Opportunities for Soochow Suzhou and Pengxin International
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Soochow and Pengxin is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Soochow Suzhou Industrial and Pengxin International Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pengxin International 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 Pengxin International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pengxin International has no effect on the direction of Soochow Suzhou i.e., Soochow Suzhou and Pengxin International go up and down completely randomly.
Pair Corralation between Soochow Suzhou and Pengxin International
Assuming the 90 days trading horizon Soochow Suzhou Industrial is expected to generate 0.14 times more return on investment than Pengxin International. However, Soochow Suzhou Industrial is 7.4 times less risky than Pengxin International. It trades about 0.27 of its potential returns per unit of risk. Pengxin International Mining is currently generating about -0.09 per unit of risk. If you would invest 333.00 in Soochow Suzhou Industrial on October 14, 2024 and sell it today you would earn a total of 13.00 from holding Soochow Suzhou Industrial or generate 3.9% 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. Pengxin International Mining
Performance |
| Timeline |
| Soochow Suzhou Industrial |
| Pengxin International |
Soochow Suzhou and Pengxin International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Soochow Suzhou and Pengxin International
The main advantage of trading using opposite Soochow Suzhou and Pengxin International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Soochow Suzhou position performs unexpectedly, Pengxin International 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 Pengxin International will offset losses from the drop in Pengxin International's long position.| Soochow Suzhou vs. Air China Ltd | Soochow Suzhou vs. Mango Excellent Media | Soochow Suzhou vs. HUAQIN TECHNOLOGY LTD | Soochow Suzhou vs. Beijing Enlight Media |
| Pengxin International vs. Vohringer Home Technology | Pengxin International vs. Ningbo Kangqiang Electronics | Pengxin International vs. Oppein Home Group | Pengxin International vs. Shandong Homey Aquatic |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |