Correlation Between Suzhou Douson and Hongrun Construction
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By analyzing existing cross correlation between Suzhou Douson Drilling and Hongrun Construction Group, you can compare the effects of market volatilities on Suzhou Douson and Hongrun Construction 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 Hongrun Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Douson and Hongrun Construction.
Diversification Opportunities for Suzhou Douson and Hongrun Construction
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Suzhou and Hongrun is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Douson Drilling and Hongrun Construction Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hongrun Construction 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 Hongrun Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hongrun Construction has no effect on the direction of Suzhou Douson i.e., Suzhou Douson and Hongrun Construction go up and down completely randomly.
Pair Corralation between Suzhou Douson and Hongrun Construction
Assuming the 90 days trading horizon Suzhou Douson Drilling is expected to generate 1.31 times more return on investment than Hongrun Construction. However, Suzhou Douson is 1.31 times more volatile than Hongrun Construction Group. It trades about 0.18 of its potential returns per unit of risk. Hongrun Construction Group is currently generating about 0.19 per unit of risk. If you would invest 1,942 in Suzhou Douson Drilling on August 25, 2024 and sell it today you would earn a total of 298.00 from holding Suzhou Douson Drilling or generate 15.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Suzhou Douson Drilling vs. Hongrun Construction Group
Performance |
| Timeline |
| Suzhou Douson Drilling |
| Hongrun Construction |
Suzhou Douson and Hongrun Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Douson and Hongrun Construction
The main advantage of trading using opposite Suzhou Douson and Hongrun Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Douson position performs unexpectedly, Hongrun Construction 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 Hongrun Construction will offset losses from the drop in Hongrun Construction's long position.| Suzhou Douson vs. Guangzhou Jinyi Media | Suzhou Douson vs. Zhejiang Daily Media | Suzhou Douson vs. Qinghaihuading Industrial Co | Suzhou Douson vs. Chengtun Mining Group |
| Hongrun Construction vs. Ming Yang Smart | Hongrun Construction vs. 159681 | Hongrun Construction vs. 159005 | Hongrun Construction vs. Loctek Ergonomic Technology |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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