Correlation Between Suzhou Douson and Epoxy Base
Specify exactly 2 symbols:
By analyzing existing cross correlation between Suzhou Douson Drilling and Epoxy Base Electronic, you can compare the effects of market volatilities on Suzhou Douson and Epoxy Base 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 Epoxy Base. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Douson and Epoxy Base.
Diversification Opportunities for Suzhou Douson and Epoxy Base
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Suzhou and Epoxy is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Douson Drilling and Epoxy Base Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Epoxy Base Electronic 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 Epoxy Base. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Epoxy Base Electronic has no effect on the direction of Suzhou Douson i.e., Suzhou Douson and Epoxy Base go up and down completely randomly.
Pair Corralation between Suzhou Douson and Epoxy Base
Assuming the 90 days trading horizon Suzhou Douson Drilling is expected to generate 0.86 times more return on investment than Epoxy Base. However, Suzhou Douson Drilling is 1.16 times less risky than Epoxy Base. It trades about 0.12 of its potential returns per unit of risk. Epoxy Base Electronic is currently generating about -0.07 per unit of risk. If you would invest 2,520 in Suzhou Douson Drilling on October 17, 2024 and sell it today you would earn a total of 206.00 from holding Suzhou Douson Drilling or generate 8.17% 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. Epoxy Base Electronic
Performance |
| Timeline |
| Suzhou Douson Drilling |
| Epoxy Base Electronic |
Suzhou Douson and Epoxy Base Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Douson and Epoxy Base
The main advantage of trading using opposite Suzhou Douson and Epoxy Base positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Douson position performs unexpectedly, Epoxy Base 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 Epoxy Base will offset losses from the drop in Epoxy Base's long position.| Suzhou Douson vs. Xiangyang Automobile Bearing | Suzhou Douson vs. Shanghai Rightongene Biotechnology | Suzhou Douson vs. Kingclean Electric Co | Suzhou Douson vs. Shaanxi Meineng Clean |
| Epoxy Base vs. Jointo Energy Investment | Epoxy Base vs. Servyou Software Group | Epoxy Base vs. Jiangsu Yueda Investment | Epoxy Base 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |