Correlation Between Thinkingdom Media and Suzhou Douson
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By analyzing existing cross correlation between Thinkingdom Media Group and Suzhou Douson Drilling, you can compare the effects of market volatilities on Thinkingdom Media 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 Thinkingdom Media with a short position of Suzhou Douson. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thinkingdom Media and Suzhou Douson.
Diversification Opportunities for Thinkingdom Media and Suzhou Douson
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Thinkingdom and Suzhou is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Thinkingdom Media Group 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 Thinkingdom Media 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 Thinkingdom Media Group 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 Thinkingdom Media i.e., Thinkingdom Media and Suzhou Douson go up and down completely randomly.
Pair Corralation between Thinkingdom Media and Suzhou Douson
Assuming the 90 days trading horizon Thinkingdom Media Group is expected to generate 1.22 times more return on investment than Suzhou Douson. However, Thinkingdom Media is 1.22 times more volatile than Suzhou Douson Drilling. It trades about 0.22 of its potential returns per unit of risk. Suzhou Douson Drilling is currently generating about 0.16 per unit of risk. If you would invest 1,777 in Thinkingdom Media Group on September 13, 2024 and sell it today you would earn a total of 339.00 from holding Thinkingdom Media Group or generate 19.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thinkingdom Media Group vs. Suzhou Douson Drilling
Performance |
| Timeline |
| Thinkingdom Media |
| Suzhou Douson Drilling |
Thinkingdom Media and Suzhou Douson Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thinkingdom Media and Suzhou Douson
The main advantage of trading using opposite Thinkingdom Media and Suzhou Douson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thinkingdom Media 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.| Thinkingdom Media vs. Ming Yang Smart | Thinkingdom Media vs. 159681 | Thinkingdom Media vs. 159005 | Thinkingdom Media vs. Loctek Ergonomic Technology |
| Suzhou Douson vs. Guangdong Jingyi Metal | Suzhou Douson vs. Datang HuaYin Electric | Suzhou Douson vs. AVCON Information Tech | Suzhou Douson vs. Yunnan Xiyi Industrial |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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