Correlation Between Shaanxi Broadcast and Suzhou Xingye
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By analyzing existing cross correlation between Shaanxi Broadcast TV and Suzhou Xingye Material, you can compare the effects of market volatilities on Shaanxi Broadcast and Suzhou Xingye 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 Shaanxi Broadcast with a short position of Suzhou Xingye. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shaanxi Broadcast and Suzhou Xingye.
Diversification Opportunities for Shaanxi Broadcast and Suzhou Xingye
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shaanxi and Suzhou is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Shaanxi Broadcast TV and Suzhou Xingye Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Xingye Material and Shaanxi Broadcast 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 Shaanxi Broadcast TV are associated (or correlated) with Suzhou Xingye. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou Xingye Material has no effect on the direction of Shaanxi Broadcast i.e., Shaanxi Broadcast and Suzhou Xingye go up and down completely randomly.
Pair Corralation between Shaanxi Broadcast and Suzhou Xingye
Assuming the 90 days trading horizon Shaanxi Broadcast TV is expected to under-perform the Suzhou Xingye. But the stock apears to be less risky and, when comparing its historical volatility, Shaanxi Broadcast TV is 1.06 times less risky than Suzhou Xingye. The stock trades about -0.54 of its potential returns per unit of risk. The Suzhou Xingye Material is currently generating about -0.34 of returns per unit of risk over similar time horizon. If you would invest 969.00 in Suzhou Xingye Material on October 16, 2024 and sell it today you would lose (166.00) from holding Suzhou Xingye Material or give up 17.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shaanxi Broadcast TV vs. Suzhou Xingye Material
Performance |
| Timeline |
| Shaanxi Broadcast |
| Suzhou Xingye Material |
Shaanxi Broadcast and Suzhou Xingye Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shaanxi Broadcast and Suzhou Xingye
The main advantage of trading using opposite Shaanxi Broadcast and Suzhou Xingye positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shaanxi Broadcast position performs unexpectedly, Suzhou Xingye 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 Xingye will offset losses from the drop in Suzhou Xingye's long position.| Shaanxi Broadcast vs. Chengdu Xinzhu RoadBridge | Shaanxi Broadcast vs. Fibocom Wireless | Shaanxi Broadcast vs. Songz Automobile Air | Shaanxi Broadcast vs. Hainan Haiqi Transportation |
| Suzhou Xingye vs. Zhongshan Public Utilities | Suzhou Xingye vs. China Satellite Communications | Suzhou Xingye vs. Hangzhou Arcvideo Technology | Suzhou Xingye vs. Tianjin Capital Environmental |
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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