Correlation Between Tengda Construction and Soochow Suzhou
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By analyzing existing cross correlation between Tengda Construction Group and Soochow Suzhou Industrial, you can compare the effects of market volatilities on Tengda Construction and Soochow Suzhou 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 Tengda Construction with a short position of Soochow Suzhou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tengda Construction and Soochow Suzhou.
Diversification Opportunities for Tengda Construction and Soochow Suzhou
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Tengda and Soochow is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Tengda Construction Group and Soochow Suzhou Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Soochow Suzhou Industrial and Tengda Construction 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 Tengda Construction Group are associated (or correlated) with Soochow Suzhou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Soochow Suzhou Industrial has no effect on the direction of Tengda Construction i.e., Tengda Construction and Soochow Suzhou go up and down completely randomly.
Pair Corralation between Tengda Construction and Soochow Suzhou
Assuming the 90 days trading horizon Tengda Construction Group is expected to under-perform the Soochow Suzhou. In addition to that, Tengda Construction is 2.16 times more volatile than Soochow Suzhou Industrial. It trades about -0.06 of its total potential returns per unit of risk. Soochow Suzhou Industrial is currently generating about 0.56 per unit of volatility. 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 Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tengda Construction Group vs. Soochow Suzhou Industrial
Performance |
| Timeline |
| Tengda Construction |
| Soochow Suzhou Industrial |
Tengda Construction and Soochow Suzhou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tengda Construction and Soochow Suzhou
The main advantage of trading using opposite Tengda Construction and Soochow Suzhou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tengda Construction position performs unexpectedly, Soochow Suzhou 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 Soochow Suzhou will offset losses from the drop in Soochow Suzhou's long position.| Tengda Construction vs. Shenzhen Shenbao Industrial | Tengda Construction vs. Xinjiang Baodi Mining | Tengda Construction vs. Guangzhou Automobile Group | Tengda Construction vs. Yoantion Industrial IncLtd |
| Soochow Suzhou vs. Union Semiconductor Co | Soochow Suzhou vs. Southchip Semiconductor Technology | Soochow Suzhou vs. Yuanjie Semiconductor Technology | Soochow Suzhou vs. Giantec Semiconductor Corp |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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