Correlation Between Suzhou Douson and Super Dragon
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By analyzing existing cross correlation between Suzhou Douson Drilling and Super Dragon Engineering Plastics, you can compare the effects of market volatilities on Suzhou Douson and Super Dragon 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 Super Dragon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Douson and Super Dragon.
Diversification Opportunities for Suzhou Douson and Super Dragon
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Suzhou and Super is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Douson Drilling and Super Dragon Engineering Plast in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Super Dragon Enginee 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 Super Dragon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Super Dragon Enginee has no effect on the direction of Suzhou Douson i.e., Suzhou Douson and Super Dragon go up and down completely randomly.
Pair Corralation between Suzhou Douson and Super Dragon
Assuming the 90 days trading horizon Suzhou Douson is expected to generate 1.21 times less return on investment than Super Dragon. In addition to that, Suzhou Douson is 1.01 times more volatile than Super Dragon Engineering Plastics. It trades about 0.14 of its total potential returns per unit of risk. Super Dragon Engineering Plastics is currently generating about 0.18 per unit of volatility. If you would invest 3,700 in Super Dragon Engineering Plastics on September 12, 2024 and sell it today you would earn a total of 461.00 from holding Super Dragon Engineering Plastics or generate 12.46% 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. Super Dragon Engineering Plast
Performance |
| Timeline |
| Suzhou Douson Drilling |
| Super Dragon Enginee |
Suzhou Douson and Super Dragon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Douson and Super Dragon
The main advantage of trading using opposite Suzhou Douson and Super Dragon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Douson position performs unexpectedly, Super Dragon 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 Super Dragon will offset losses from the drop in Super Dragon's long position.| Suzhou Douson vs. Zhejiang Kingland Pipeline | Suzhou Douson vs. Gansu Jiu Steel | Suzhou Douson vs. Shandong Mining Machinery | Suzhou Douson vs. Aba Chemicals Corp |
| Super Dragon vs. Agricultural Bank of | Super Dragon vs. Industrial and Commercial | Super Dragon vs. Bank of China | Super Dragon vs. PetroChina Co Ltd |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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