Correlation Between Soochow Suzhou and Ningbo Fujia
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By analyzing existing cross correlation between Soochow Suzhou Industrial and Ningbo Fujia Industrial, you can compare the effects of market volatilities on Soochow Suzhou and Ningbo Fujia 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 Ningbo Fujia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Soochow Suzhou and Ningbo Fujia.
Diversification Opportunities for Soochow Suzhou and Ningbo Fujia
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Soochow and Ningbo is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Soochow Suzhou Industrial and Ningbo Fujia Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Fujia 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 Ningbo Fujia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Fujia Industrial has no effect on the direction of Soochow Suzhou i.e., Soochow Suzhou and Ningbo Fujia go up and down completely randomly.
Pair Corralation between Soochow Suzhou and Ningbo Fujia
Assuming the 90 days trading horizon Soochow Suzhou Industrial is expected to generate 0.22 times more return on investment than Ningbo Fujia. However, Soochow Suzhou Industrial is 4.49 times less risky than Ningbo Fujia. It trades about 0.56 of its potential returns per unit of risk. Ningbo Fujia Industrial is currently generating about 0.06 per unit of risk. If you would invest 334.00 in Soochow Suzhou Industrial on November 3, 2024 and sell it today you would earn a total of 27.00 from holding Soochow Suzhou Industrial or generate 8.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Soochow Suzhou Industrial vs. Ningbo Fujia Industrial
Performance |
| Timeline |
| Soochow Suzhou Industrial |
| Ningbo Fujia Industrial |
Soochow Suzhou and Ningbo Fujia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Soochow Suzhou and Ningbo Fujia
The main advantage of trading using opposite Soochow Suzhou and Ningbo Fujia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Soochow Suzhou position performs unexpectedly, Ningbo Fujia 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 Ningbo Fujia will offset losses from the drop in Ningbo Fujia's long position.| Soochow Suzhou vs. Luolai Home Textile | Soochow Suzhou vs. Changzhou Evergreen Technology | Soochow Suzhou vs. Quectel Wireless Solutions | Soochow Suzhou vs. Sinofibers Technology Co |
| Ningbo Fujia vs. Western Metal Materials | Ningbo Fujia vs. Capitalonline Data Service | Ningbo Fujia vs. Tibet Huayu Mining | Ningbo Fujia vs. Bohai Leasing 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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