Correlation Between Soochow Suzhou and Keda Clean
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By analyzing existing cross correlation between Soochow Suzhou Industrial and Keda Clean Energy, you can compare the effects of market volatilities on Soochow Suzhou and Keda Clean 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 Keda Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Soochow Suzhou and Keda Clean.
Diversification Opportunities for Soochow Suzhou and Keda Clean
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Soochow and Keda is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Soochow Suzhou Industrial and Keda Clean Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keda Clean Energy 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 Keda Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Keda Clean Energy has no effect on the direction of Soochow Suzhou i.e., Soochow Suzhou and Keda Clean go up and down completely randomly.
Pair Corralation between Soochow Suzhou and Keda Clean
Assuming the 90 days trading horizon Soochow Suzhou Industrial is expected to generate 0.54 times more return on investment than Keda Clean. However, Soochow Suzhou Industrial is 1.84 times less risky than Keda Clean. It trades about 0.31 of its potential returns per unit of risk. Keda Clean Energy is currently generating about -0.09 per unit of risk. If you would invest 327.00 in Soochow Suzhou Industrial on October 30, 2024 and sell it today you would earn a total of 34.00 from holding Soochow Suzhou Industrial or generate 10.4% 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. Keda Clean Energy
Performance |
| Timeline |
| Soochow Suzhou Industrial |
| Keda Clean Energy |
Soochow Suzhou and Keda Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Soochow Suzhou and Keda Clean
The main advantage of trading using opposite Soochow Suzhou and Keda Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Soochow Suzhou position performs unexpectedly, Keda Clean 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 Keda Clean will offset losses from the drop in Keda Clean'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 |
| Keda Clean vs. City Development Environment | Keda Clean vs. Wuhan Hvsen Biotechnology | Keda Clean vs. Eit Environmental Development | Keda Clean vs. Shandong Iron and |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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