Correlation Between Shanghai Shibei and Suzhou Oriental
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By analyzing existing cross correlation between Shanghai Shibei Hi Tech and Suzhou Oriental Semiconductor, you can compare the effects of market volatilities on Shanghai Shibei and Suzhou Oriental 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 Shanghai Shibei with a short position of Suzhou Oriental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Shibei and Suzhou Oriental.
Diversification Opportunities for Shanghai Shibei and Suzhou Oriental
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Shanghai and Suzhou is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Shibei Hi Tech and Suzhou Oriental Semiconductor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Oriental Semi and Shanghai Shibei 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 Shanghai Shibei Hi Tech are associated (or correlated) with Suzhou Oriental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou Oriental Semi has no effect on the direction of Shanghai Shibei i.e., Shanghai Shibei and Suzhou Oriental go up and down completely randomly.
Pair Corralation between Shanghai Shibei and Suzhou Oriental
Assuming the 90 days trading horizon Shanghai Shibei Hi Tech is expected to generate 0.83 times more return on investment than Suzhou Oriental. However, Shanghai Shibei Hi Tech is 1.21 times less risky than Suzhou Oriental. It trades about 0.08 of its potential returns per unit of risk. Suzhou Oriental Semiconductor is currently generating about 0.01 per unit of risk. If you would invest 339.00 in Shanghai Shibei Hi Tech on October 18, 2024 and sell it today you would earn a total of 113.00 from holding Shanghai Shibei Hi Tech or generate 33.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Shibei Hi Tech vs. Suzhou Oriental Semiconductor
Performance |
| Timeline |
| Shanghai Shibei Hi |
| Suzhou Oriental Semi |
Shanghai Shibei and Suzhou Oriental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Shibei and Suzhou Oriental
The main advantage of trading using opposite Shanghai Shibei and Suzhou Oriental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Shibei position performs unexpectedly, Suzhou Oriental 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 Oriental will offset losses from the drop in Suzhou Oriental's long position.| Shanghai Shibei vs. AVCON Information Tech | Shanghai Shibei vs. Hangzhou Gisway Information | Shanghai Shibei vs. Shenzhen SDG Information | Shanghai Shibei vs. CITIC Guoan Information |
| Suzhou Oriental vs. Tongyu Communication | Suzhou Oriental vs. Guangdong Jingyi Metal | Suzhou Oriental vs. Tianjin Hi Tech Development | Suzhou Oriental vs. Shanghai Shibei Hi Tech |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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