Correlation Between Shandong Publishing and Suzhou Mingzhi
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By analyzing existing cross correlation between Shandong Publishing Media and Suzhou Mingzhi Technology, you can compare the effects of market volatilities on Shandong Publishing and Suzhou Mingzhi 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 Shandong Publishing with a short position of Suzhou Mingzhi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Publishing and Suzhou Mingzhi.
Diversification Opportunities for Shandong Publishing and Suzhou Mingzhi
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shandong and Suzhou is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Publishing Media and Suzhou Mingzhi Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Mingzhi Technology and Shandong Publishing 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 Shandong Publishing Media are associated (or correlated) with Suzhou Mingzhi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou Mingzhi Technology has no effect on the direction of Shandong Publishing i.e., Shandong Publishing and Suzhou Mingzhi go up and down completely randomly.
Pair Corralation between Shandong Publishing and Suzhou Mingzhi
Assuming the 90 days trading horizon Shandong Publishing Media is expected to generate 0.77 times more return on investment than Suzhou Mingzhi. However, Shandong Publishing Media is 1.29 times less risky than Suzhou Mingzhi. It trades about 0.05 of its potential returns per unit of risk. Suzhou Mingzhi Technology is currently generating about -0.03 per unit of risk. If you would invest 614.00 in Shandong Publishing Media on October 18, 2024 and sell it today you would earn a total of 393.00 from holding Shandong Publishing Media or generate 64.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Publishing Media vs. Suzhou Mingzhi Technology
Performance |
| Timeline |
| Shandong Publishing Media |
| Suzhou Mingzhi Technology |
Shandong Publishing and Suzhou Mingzhi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Publishing and Suzhou Mingzhi
The main advantage of trading using opposite Shandong Publishing and Suzhou Mingzhi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Publishing position performs unexpectedly, Suzhou Mingzhi 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 Mingzhi will offset losses from the drop in Suzhou Mingzhi's long position.| Shandong Publishing vs. Spring Airlines Co | Shandong Publishing vs. Guilin Seamild Foods | Shandong Publishing vs. HaiXin Foods Co | Shandong Publishing vs. Beijing Sanyuan Foods |
| Suzhou Mingzhi vs. Chahua Modern Housewares | Suzhou Mingzhi vs. Offcn Education Technology | Suzhou Mingzhi vs. BTG Hotels Group | Suzhou Mingzhi vs. Shandong Publishing Media |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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