Correlation Between Suzhou Xingye and Hunan Investment
Specify exactly 2 symbols:
By analyzing existing cross correlation between Suzhou Xingye Material and Hunan Investment Group, you can compare the effects of market volatilities on Suzhou Xingye and Hunan Investment 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 Xingye with a short position of Hunan Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Xingye and Hunan Investment.
Diversification Opportunities for Suzhou Xingye and Hunan Investment
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Suzhou and Hunan is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Xingye Material and Hunan Investment Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunan Investment and Suzhou Xingye 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 Xingye Material are associated (or correlated) with Hunan Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hunan Investment has no effect on the direction of Suzhou Xingye i.e., Suzhou Xingye and Hunan Investment go up and down completely randomly.
Pair Corralation between Suzhou Xingye and Hunan Investment
Assuming the 90 days trading horizon Suzhou Xingye is expected to generate 2.08 times less return on investment than Hunan Investment. But when comparing it to its historical volatility, Suzhou Xingye Material is 1.04 times less risky than Hunan Investment. It trades about 0.1 of its potential returns per unit of risk. Hunan Investment Group is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 513.00 in Hunan Investment Group on August 29, 2024 and sell it today you would earn a total of 86.00 from holding Hunan Investment Group or generate 16.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Suzhou Xingye Material vs. Hunan Investment Group
Performance |
| Timeline |
| Suzhou Xingye Material |
| Hunan Investment |
Suzhou Xingye and Hunan Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Xingye and Hunan Investment
The main advantage of trading using opposite Suzhou Xingye and Hunan Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Xingye position performs unexpectedly, Hunan Investment 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 Hunan Investment will offset losses from the drop in Hunan Investment's long position.| Suzhou Xingye vs. Hunan Investment Group | Suzhou Xingye vs. Chengdu Xingrong Investment | Suzhou Xingye vs. Kunwu Jiuding Investment | Suzhou Xingye vs. Harbin Hatou Investment |
| Hunan Investment vs. PetroChina Co Ltd | Hunan Investment vs. China State Construction | Hunan Investment vs. China Mobile Limited | Hunan Investment vs. Industrial and Commercial |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Commodity Directory Find actively traded commodities issued by global exchanges |