Correlation Between Suzhou Douson and Unigroup Guoxin
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By analyzing existing cross correlation between Suzhou Douson Drilling and Unigroup Guoxin Microelectronics, you can compare the effects of market volatilities on Suzhou Douson and Unigroup Guoxin 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 Unigroup Guoxin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Douson and Unigroup Guoxin.
Diversification Opportunities for Suzhou Douson and Unigroup Guoxin
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Suzhou and Unigroup is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Douson Drilling and Unigroup Guoxin Microelectroni in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unigroup Guoxin Micr 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 Unigroup Guoxin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unigroup Guoxin Micr has no effect on the direction of Suzhou Douson i.e., Suzhou Douson and Unigroup Guoxin go up and down completely randomly.
Pair Corralation between Suzhou Douson and Unigroup Guoxin
Assuming the 90 days trading horizon Suzhou Douson Drilling is expected to generate 2.45 times more return on investment than Unigroup Guoxin. However, Suzhou Douson is 2.45 times more volatile than Unigroup Guoxin Microelectronics. It trades about 0.14 of its potential returns per unit of risk. Unigroup Guoxin Microelectronics is currently generating about 0.2 per unit of risk. If you would invest 2,242 in Suzhou Douson Drilling on September 24, 2024 and sell it today you would earn a total of 216.00 from holding Suzhou Douson Drilling or generate 9.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Suzhou Douson Drilling vs. Unigroup Guoxin Microelectroni
Performance |
| Timeline |
| Suzhou Douson Drilling |
| Unigroup Guoxin Micr |
Suzhou Douson and Unigroup Guoxin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Douson and Unigroup Guoxin
The main advantage of trading using opposite Suzhou Douson and Unigroup Guoxin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Douson position performs unexpectedly, Unigroup Guoxin 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 Unigroup Guoxin will offset losses from the drop in Unigroup Guoxin's long position.| Suzhou Douson vs. Hunan Mendale Hometextile | Suzhou Douson vs. Easyhome New Retail | Suzhou Douson vs. Holitech Technology Co | Suzhou Douson vs. HUAQIN TECHNOLOGY LTD |
| Unigroup Guoxin vs. Bloomage Biotechnology Corp | Unigroup Guoxin vs. Sichuan Hebang Biotechnology | Unigroup Guoxin vs. Hygon Information Technology | Unigroup Guoxin vs. Guangzhou Ruoyuchen Information |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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