Correlation Between Flat Glass and Suzhou Weizhixiang
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By analyzing existing cross correlation between Flat Glass Group and Suzhou Weizhixiang Food, you can compare the effects of market volatilities on Flat Glass and Suzhou Weizhixiang 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 Flat Glass with a short position of Suzhou Weizhixiang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flat Glass and Suzhou Weizhixiang.
Diversification Opportunities for Flat Glass and Suzhou Weizhixiang
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Flat and Suzhou is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Flat Glass Group and Suzhou Weizhixiang Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Weizhixiang Food and Flat Glass 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 Flat Glass Group are associated (or correlated) with Suzhou Weizhixiang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou Weizhixiang Food has no effect on the direction of Flat Glass i.e., Flat Glass and Suzhou Weizhixiang go up and down completely randomly.
Pair Corralation between Flat Glass and Suzhou Weizhixiang
Assuming the 90 days trading horizon Flat Glass Group is expected to generate 1.13 times more return on investment than Suzhou Weizhixiang. However, Flat Glass is 1.13 times more volatile than Suzhou Weizhixiang Food. It trades about -0.01 of its potential returns per unit of risk. Suzhou Weizhixiang Food is currently generating about -0.04 per unit of risk. If you would invest 3,450 in Flat Glass Group on August 30, 2024 and sell it today you would lose (890.00) from holding Flat Glass Group or give up 25.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Flat Glass Group vs. Suzhou Weizhixiang Food
Performance |
| Timeline |
| Flat Glass Group |
| Suzhou Weizhixiang Food |
Flat Glass and Suzhou Weizhixiang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flat Glass and Suzhou Weizhixiang
The main advantage of trading using opposite Flat Glass and Suzhou Weizhixiang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flat Glass position performs unexpectedly, Suzhou Weizhixiang 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 Weizhixiang will offset losses from the drop in Suzhou Weizhixiang's long position.| Flat Glass vs. Xiandai Investment Co | Flat Glass vs. Digital China Information | Flat Glass vs. Zhongrun Resources Investment | Flat Glass vs. Yonyou Auto Information |
| Suzhou Weizhixiang vs. PetroChina Co Ltd | Suzhou Weizhixiang vs. China Mobile Limited | Suzhou Weizhixiang vs. Ping An Insurance | Suzhou Weizhixiang vs. China Petroleum Chemical |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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