Correlation Between Jiangxi Lianchuang and Suzhou Douson
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By analyzing existing cross correlation between Jiangxi Lianchuang Opto electronic and Suzhou Douson Drilling, you can compare the effects of market volatilities on Jiangxi Lianchuang and Suzhou Douson 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 Jiangxi Lianchuang with a short position of Suzhou Douson. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Lianchuang and Suzhou Douson.
Diversification Opportunities for Jiangxi Lianchuang and Suzhou Douson
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jiangxi and Suzhou is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Lianchuang Opto electr and Suzhou Douson Drilling in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Douson Drilling and Jiangxi Lianchuang 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 Jiangxi Lianchuang Opto electronic are associated (or correlated) with Suzhou Douson. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou Douson Drilling has no effect on the direction of Jiangxi Lianchuang i.e., Jiangxi Lianchuang and Suzhou Douson go up and down completely randomly.
Pair Corralation between Jiangxi Lianchuang and Suzhou Douson
Assuming the 90 days trading horizon Jiangxi Lianchuang Opto electronic is expected to under-perform the Suzhou Douson. But the stock apears to be less risky and, when comparing its historical volatility, Jiangxi Lianchuang Opto electronic is 1.24 times less risky than Suzhou Douson. The stock trades about -0.04 of its potential returns per unit of risk. The Suzhou Douson Drilling is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2,458 in Suzhou Douson Drilling on October 23, 2024 and sell it today you would earn a total of 49.00 from holding Suzhou Douson Drilling or generate 1.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Jiangxi Lianchuang Opto electr vs. Suzhou Douson Drilling
Performance |
| Timeline |
| Jiangxi Lianchuang Opto |
| Suzhou Douson Drilling |
Jiangxi Lianchuang and Suzhou Douson Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangxi Lianchuang and Suzhou Douson
The main advantage of trading using opposite Jiangxi Lianchuang and Suzhou Douson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Lianchuang position performs unexpectedly, Suzhou Douson 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 Suzhou Douson will offset losses from the drop in Suzhou Douson's long position.| Jiangxi Lianchuang vs. Industrial and Commercial | Jiangxi Lianchuang vs. Agricultural Bank of | Jiangxi Lianchuang vs. China Construction Bank | Jiangxi Lianchuang vs. Bank of China |
| Suzhou Douson vs. Zhejiang Kingland Pipeline | Suzhou Douson vs. Jiangxi Lianchuang Opto electronic | Suzhou Douson vs. Guangzhou Jinyi Media | Suzhou Douson vs. Kontour Medical Technology |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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