Correlation Between Sinotrans and Suzhou Douson
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By analyzing existing cross correlation between Sinotrans Ltd Class and Suzhou Douson Drilling, you can compare the effects of market volatilities on Sinotrans 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 Sinotrans with a short position of Suzhou Douson. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinotrans and Suzhou Douson.
Diversification Opportunities for Sinotrans and Suzhou Douson
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sinotrans and Suzhou is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Sinotrans Ltd Class 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 Sinotrans 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 Sinotrans Ltd Class 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 Sinotrans i.e., Sinotrans and Suzhou Douson go up and down completely randomly.
Pair Corralation between Sinotrans and Suzhou Douson
Assuming the 90 days trading horizon Sinotrans Ltd Class is expected to generate 0.71 times more return on investment than Suzhou Douson. However, Sinotrans Ltd Class is 1.4 times less risky than Suzhou Douson. It trades about 0.04 of its potential returns per unit of risk. Suzhou Douson Drilling is currently generating about 0.01 per unit of risk. If you would invest 390.00 in Sinotrans Ltd Class on October 16, 2024 and sell it today you would earn a total of 119.00 from holding Sinotrans Ltd Class or generate 30.51% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Sinotrans Ltd Class vs. Suzhou Douson Drilling
Performance |
Timeline |
Sinotrans Class |
Suzhou Douson Drilling |
Sinotrans and Suzhou Douson Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sinotrans and Suzhou Douson
The main advantage of trading using opposite Sinotrans and Suzhou Douson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinotrans 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.Sinotrans vs. Shandong Sinoglory Health | Sinotrans vs. China Reform Health | Sinotrans vs. Xiangyang Automobile Bearing | Sinotrans vs. Healthcare Co |
Suzhou Douson vs. Kingclean Electric Co | Suzhou Douson vs. Jiangsu Phoenix Publishing | Suzhou Douson vs. Offcn Education Technology | Suzhou Douson vs. CSSC Offshore Marine |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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