Correlation Between Suzhou Douson and Fuyao Glass
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By analyzing existing cross correlation between Suzhou Douson Drilling and Fuyao Glass Industry, you can compare the effects of market volatilities on Suzhou Douson and Fuyao Glass 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 Fuyao Glass. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Douson and Fuyao Glass.
Diversification Opportunities for Suzhou Douson and Fuyao Glass
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Suzhou and Fuyao is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Douson Drilling and Fuyao Glass Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fuyao Glass Industry 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 Fuyao Glass. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fuyao Glass Industry has no effect on the direction of Suzhou Douson i.e., Suzhou Douson and Fuyao Glass go up and down completely randomly.
Pair Corralation between Suzhou Douson and Fuyao Glass
Assuming the 90 days trading horizon Suzhou Douson Drilling is expected to generate 2.72 times more return on investment than Fuyao Glass. However, Suzhou Douson is 2.72 times more volatile than Fuyao Glass Industry. It trades about -0.02 of its potential returns per unit of risk. Fuyao Glass Industry is currently generating about -0.13 per unit of risk. If you would invest 2,411 in Suzhou Douson Drilling on August 31, 2024 and sell it today you would lose (61.00) from holding Suzhou Douson Drilling or give up 2.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Suzhou Douson Drilling vs. Fuyao Glass Industry
Performance |
| Timeline |
| Suzhou Douson Drilling |
| Fuyao Glass Industry |
Suzhou Douson and Fuyao Glass Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Douson and Fuyao Glass
The main advantage of trading using opposite Suzhou Douson and Fuyao Glass positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Douson position performs unexpectedly, Fuyao Glass 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 Fuyao Glass will offset losses from the drop in Fuyao Glass' long position.| Suzhou Douson vs. Zhejiang Kingland Pipeline | Suzhou Douson vs. Gansu Jiu Steel | Suzhou Douson vs. Ming Yang Smart | Suzhou Douson vs. Aba Chemicals Corp |
| Fuyao Glass vs. Changchun BCHT Biotechnology | Fuyao Glass vs. Chenzhou Jingui Silver | Fuyao Glass vs. Shenzhen Bioeasy Biotechnology | Fuyao Glass vs. Tianjin Silvery Dragon |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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