Correlation Between Suzhou Douson and XinJiang GuoTong
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By analyzing existing cross correlation between Suzhou Douson Drilling and XinJiang GuoTong Pipeline, you can compare the effects of market volatilities on Suzhou Douson and XinJiang GuoTong 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 XinJiang GuoTong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Douson and XinJiang GuoTong.
Diversification Opportunities for Suzhou Douson and XinJiang GuoTong
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Suzhou and XinJiang is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Douson Drilling and XinJiang GuoTong Pipeline in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XinJiang GuoTong Pipeline 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 XinJiang GuoTong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XinJiang GuoTong Pipeline has no effect on the direction of Suzhou Douson i.e., Suzhou Douson and XinJiang GuoTong go up and down completely randomly.
Pair Corralation between Suzhou Douson and XinJiang GuoTong
Assuming the 90 days trading horizon Suzhou Douson Drilling is expected to under-perform the XinJiang GuoTong. In addition to that, Suzhou Douson is 1.64 times more volatile than XinJiang GuoTong Pipeline. It trades about -0.19 of its total potential returns per unit of risk. XinJiang GuoTong Pipeline is currently generating about 0.05 per unit of volatility. If you would invest 930.00 in XinJiang GuoTong Pipeline on January 26, 2025 and sell it today you would earn a total of 18.00 from holding XinJiang GuoTong Pipeline or generate 1.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Suzhou Douson Drilling vs. XinJiang GuoTong Pipeline
Performance |
| Timeline |
| Suzhou Douson Drilling |
| XinJiang GuoTong Pipeline |
Suzhou Douson and XinJiang GuoTong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Douson and XinJiang GuoTong
The main advantage of trading using opposite Suzhou Douson and XinJiang GuoTong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Douson position performs unexpectedly, XinJiang GuoTong 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 XinJiang GuoTong will offset losses from the drop in XinJiang GuoTong's long position.| Suzhou Douson vs. Ciwen Media Co | Suzhou Douson vs. Anhui Xinhua Media | Suzhou Douson vs. Sportsoul Co Ltd | Suzhou Douson vs. JiShi Media Co |
| XinJiang GuoTong vs. Industrial and Commercial | XinJiang GuoTong vs. Agricultural Bank of | XinJiang GuoTong vs. China Construction Bank | XinJiang GuoTong vs. Bank of China |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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