Correlation Between Suzhou Douson and New China
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By analyzing existing cross correlation between Suzhou Douson Drilling and New China Life, you can compare the effects of market volatilities on Suzhou Douson and New China 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 New China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Douson and New China.
Diversification Opportunities for Suzhou Douson and New China
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Suzhou and New is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Douson Drilling and New China Life in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New China Life 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 New China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New China Life has no effect on the direction of Suzhou Douson i.e., Suzhou Douson and New China go up and down completely randomly.
Pair Corralation between Suzhou Douson and New China
Assuming the 90 days trading horizon Suzhou Douson Drilling is expected to generate 1.73 times more return on investment than New China. However, Suzhou Douson is 1.73 times more volatile than New China Life. It trades about 0.02 of its potential returns per unit of risk. New China Life is currently generating about -0.26 per unit of risk. If you would invest 2,520 in Suzhou Douson Drilling on October 16, 2024 and sell it today you would earn a total of 7.00 from holding Suzhou Douson Drilling or generate 0.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Suzhou Douson Drilling vs. New China Life
Performance |
| Timeline |
| Suzhou Douson Drilling |
| New China Life |
Suzhou Douson and New China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Douson and New China
The main advantage of trading using opposite Suzhou Douson and New China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Douson position performs unexpectedly, New China 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 New China will offset losses from the drop in New China's long position.| Suzhou Douson vs. CareRay Digital Medical | Suzhou Douson vs. Postal Savings Bank | Suzhou Douson vs. Winner Medical Co | Suzhou Douson vs. Hunan Investment Group |
| New China vs. Suzhou Douson Drilling | New China vs. GRG Banking Equipment | New China vs. Agricultural Bank of | New China vs. Industrial Bank Co |
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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