Correlation Between Soochow Suzhou and Gem Year
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By analyzing existing cross correlation between Soochow Suzhou Industrial and Gem Year Industrial Co, you can compare the effects of market volatilities on Soochow Suzhou and Gem Year 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 Gem Year. Check out your portfolio center. Please also check ongoing floating volatility patterns of Soochow Suzhou and Gem Year.
Diversification Opportunities for Soochow Suzhou and Gem Year
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Soochow and Gem is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Soochow Suzhou Industrial and Gem Year Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gem Year Industrial 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 Gem Year. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gem Year Industrial has no effect on the direction of Soochow Suzhou i.e., Soochow Suzhou and Gem Year go up and down completely randomly.
Pair Corralation between Soochow Suzhou and Gem Year
Assuming the 90 days trading horizon Soochow Suzhou Industrial is expected to generate 0.3 times more return on investment than Gem Year. However, Soochow Suzhou Industrial is 3.29 times less risky than Gem Year. It trades about 0.27 of its potential returns per unit of risk. Gem Year Industrial Co is currently generating about -0.21 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. Gem Year Industrial Co
Performance |
| Timeline |
| Soochow Suzhou Industrial |
| Gem Year Industrial |
Soochow Suzhou and Gem Year Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Soochow Suzhou and Gem Year
The main advantage of trading using opposite Soochow Suzhou and Gem Year positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Soochow Suzhou position performs unexpectedly, Gem Year 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 Gem Year will offset losses from the drop in Gem Year'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 |
| Gem Year vs. Guangzhou Haige Communications | Gem Year vs. Xiangyang Automobile Bearing | Gem Year vs. Guizhou Chanhen Chemical | Gem Year vs. Tongyu Communication |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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