Correlation Between Ningbo Fujia and Soochow Suzhou
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By analyzing existing cross correlation between Ningbo Fujia Industrial and Soochow Suzhou Industrial, you can compare the effects of market volatilities on Ningbo Fujia and Soochow Suzhou 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 Ningbo Fujia with a short position of Soochow Suzhou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Fujia and Soochow Suzhou.
Diversification Opportunities for Ningbo Fujia and Soochow Suzhou
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Ningbo and Soochow is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Fujia Industrial and Soochow Suzhou Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Soochow Suzhou Industrial and Ningbo Fujia 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 Ningbo Fujia Industrial are associated (or correlated) with Soochow Suzhou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Soochow Suzhou Industrial has no effect on the direction of Ningbo Fujia i.e., Ningbo Fujia and Soochow Suzhou go up and down completely randomly.
Pair Corralation between Ningbo Fujia and Soochow Suzhou
Assuming the 90 days trading horizon Ningbo Fujia is expected to generate 2.0 times less return on investment than Soochow Suzhou. In addition to that, Ningbo Fujia is 4.49 times more volatile than Soochow Suzhou Industrial. It trades about 0.06 of its total potential returns per unit of risk. Soochow Suzhou Industrial is currently generating about 0.56 per unit of volatility. If you would invest 334.00 in Soochow Suzhou Industrial on November 3, 2024 and sell it today you would earn a total of 27.00 from holding Soochow Suzhou Industrial or generate 8.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Fujia Industrial vs. Soochow Suzhou Industrial
Performance |
| Timeline |
| Ningbo Fujia Industrial |
| Soochow Suzhou Industrial |
Ningbo Fujia and Soochow Suzhou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Fujia and Soochow Suzhou
The main advantage of trading using opposite Ningbo Fujia and Soochow Suzhou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Fujia position performs unexpectedly, Soochow Suzhou 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 Soochow Suzhou will offset losses from the drop in Soochow Suzhou's long position.| Ningbo Fujia vs. Western Metal Materials | Ningbo Fujia vs. Capitalonline Data Service | Ningbo Fujia vs. Tibet Huayu Mining | Ningbo Fujia vs. Bohai Leasing Co |
| Soochow Suzhou vs. Luolai Home Textile | Soochow Suzhou vs. Changzhou Evergreen Technology | Soochow Suzhou vs. Quectel Wireless Solutions | Soochow Suzhou vs. Sinofibers Technology Co |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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