Correlation Between Soochow Suzhou and China State
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By analyzing existing cross correlation between Soochow Suzhou Industrial and China State Construction, you can compare the effects of market volatilities on Soochow Suzhou and China State 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 China State. Check out your portfolio center. Please also check ongoing floating volatility patterns of Soochow Suzhou and China State.
Diversification Opportunities for Soochow Suzhou and China State
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Soochow and China is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Soochow Suzhou Industrial and China State Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China State Construction 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 China State. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China State Construction has no effect on the direction of Soochow Suzhou i.e., Soochow Suzhou and China State go up and down completely randomly.
Pair Corralation between Soochow Suzhou and China State
Assuming the 90 days trading horizon Soochow Suzhou Industrial is expected to generate 0.48 times more return on investment than China State. However, Soochow Suzhou Industrial is 2.08 times less risky than China State. It trades about 0.16 of its potential returns per unit of risk. China State Construction is currently generating about -0.11 per unit of risk. If you would invest 338.00 in Soochow Suzhou Industrial on November 6, 2024 and sell it today you would earn a total of 23.00 from holding Soochow Suzhou Industrial or generate 6.8% 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. China State Construction
Performance |
| Timeline |
| Soochow Suzhou Industrial |
| China State Construction |
Soochow Suzhou and China State Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Soochow Suzhou and China State
The main advantage of trading using opposite Soochow Suzhou and China State positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Soochow Suzhou position performs unexpectedly, China State 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 China State will offset losses from the drop in China State's long position.| Soochow Suzhou vs. Sanbo Hospital Management | Soochow Suzhou vs. Dawning Information Industry | Soochow Suzhou vs. Wonders Information | Soochow Suzhou vs. Shanghai CEO Environmental |
| China State vs. Olympic Circuit Technology | China State vs. Maxvision Technology Corp | China State vs. Guangdong TianYiMa Information | China State vs. Montage Technology Co |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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