Correlation Between Suzhou Douson and Changchun Engley
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By analyzing existing cross correlation between Suzhou Douson Drilling and Changchun Engley Automobile, you can compare the effects of market volatilities on Suzhou Douson and Changchun Engley 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 Changchun Engley. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Douson and Changchun Engley.
Diversification Opportunities for Suzhou Douson and Changchun Engley
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Suzhou and Changchun is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Douson Drilling and Changchun Engley Automobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changchun Engley Aut 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 Changchun Engley. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changchun Engley Aut has no effect on the direction of Suzhou Douson i.e., Suzhou Douson and Changchun Engley go up and down completely randomly.
Pair Corralation between Suzhou Douson and Changchun Engley
Assuming the 90 days trading horizon Suzhou Douson Drilling is expected to generate 1.51 times more return on investment than Changchun Engley. However, Suzhou Douson is 1.51 times more volatile than Changchun Engley Automobile. It trades about 0.14 of its potential returns per unit of risk. Changchun Engley Automobile is currently generating about -0.05 per unit of risk. If you would invest 1,942 in Suzhou Douson Drilling on October 24, 2024 and sell it today you would earn a total of 633.00 from holding Suzhou Douson Drilling or generate 32.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Suzhou Douson Drilling vs. Changchun Engley Automobile
Performance |
| Timeline |
| Suzhou Douson Drilling |
| Changchun Engley Aut |
Suzhou Douson and Changchun Engley Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Douson and Changchun Engley
The main advantage of trading using opposite Suzhou Douson and Changchun Engley positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Douson position performs unexpectedly, Changchun Engley 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 Changchun Engley will offset losses from the drop in Changchun Engley's long position.| Suzhou Douson vs. Heilongjiang Transport Development | Suzhou Douson vs. Zotye Automobile Co | Suzhou Douson vs. Xizi Clean Energy | Suzhou Douson vs. Guangdong Jingyi Metal |
| Changchun Engley vs. Suzhou Oriental Semiconductor | Changchun Engley vs. Shanghai Newtouch Software | Changchun Engley vs. StarPower Semiconductor | Changchun Engley vs. Suzhou Douson Drilling |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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