Correlation Between Suzhou Douson and Changchun High
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By analyzing existing cross correlation between Suzhou Douson Drilling and Changchun High New, you can compare the effects of market volatilities on Suzhou Douson and Changchun High 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 Suzhou Douson with a short position of Changchun High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Douson and Changchun High.
Diversification Opportunities for Suzhou Douson and Changchun High
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Suzhou and Changchun is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Douson Drilling and Changchun High New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changchun High New and Suzhou Douson 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 Suzhou Douson Drilling are associated (or correlated) with Changchun High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changchun High New has no effect on the direction of Suzhou Douson i.e., Suzhou Douson and Changchun High go up and down completely randomly.
Pair Corralation between Suzhou Douson and Changchun High
Assuming the 90 days trading horizon Suzhou Douson Drilling is expected to generate 1.22 times more return on investment than Changchun High. However, Suzhou Douson is 1.22 times more volatile than Changchun High New. It trades about 0.02 of its potential returns per unit of risk. Changchun High New is currently generating about -0.01 per unit of risk. If you would invest 2,339 in Suzhou Douson Drilling on September 3, 2024 and sell it today you would earn a total of 23.00 from holding Suzhou Douson Drilling or generate 0.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Suzhou Douson Drilling vs. Changchun High New
Performance |
| Timeline |
| Suzhou Douson Drilling |
| Changchun High New |
Suzhou Douson and Changchun High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Douson and Changchun High
The main advantage of trading using opposite Suzhou Douson and Changchun High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Douson position performs unexpectedly, Changchun High 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 Changchun High will offset losses from the drop in Changchun High's long position.| Suzhou Douson vs. Gansu Jiu Steel | Suzhou Douson vs. Ming Yang Smart | Suzhou Douson vs. Aba Chemicals Corp | Suzhou Douson vs. Loctek Ergonomic Technology |
| Changchun High vs. Guangzhou Restaurants Group | Changchun High vs. Suzhou Douson Drilling | Changchun High vs. Beijing Sanyuan Foods | Changchun High vs. Kingsignal 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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