Correlation Between Suzhou Xingye and Shenzhen Glory
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By analyzing existing cross correlation between Suzhou Xingye Material and Shenzhen Glory Medical, you can compare the effects of market volatilities on Suzhou Xingye and Shenzhen Glory 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 Shenzhen Glory. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Xingye and Shenzhen Glory.
Diversification Opportunities for Suzhou Xingye and Shenzhen Glory
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Suzhou and Shenzhen is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Xingye Material and Shenzhen Glory Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Glory Medical 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 Shenzhen Glory. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Glory Medical has no effect on the direction of Suzhou Xingye i.e., Suzhou Xingye and Shenzhen Glory go up and down completely randomly.
Pair Corralation between Suzhou Xingye and Shenzhen Glory
Assuming the 90 days trading horizon Suzhou Xingye Material is expected to generate 1.09 times more return on investment than Shenzhen Glory. However, Suzhou Xingye is 1.09 times more volatile than Shenzhen Glory Medical. It trades about 0.16 of its potential returns per unit of risk. Shenzhen Glory Medical is currently generating about 0.07 per unit of risk. If you would invest 735.00 in Suzhou Xingye Material on November 3, 2024 and sell it today you would earn a total of 572.00 from holding Suzhou Xingye Material or generate 77.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Suzhou Xingye Material vs. Shenzhen Glory Medical
Performance |
| Timeline |
| Suzhou Xingye Material |
| Shenzhen Glory Medical |
Suzhou Xingye and Shenzhen Glory Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Xingye and Shenzhen Glory
The main advantage of trading using opposite Suzhou Xingye and Shenzhen Glory positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Xingye position performs unexpectedly, Shenzhen Glory 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 Shenzhen Glory will offset losses from the drop in Shenzhen Glory's long position.| Suzhou Xingye vs. Zhangjiagang Elegant Home | Suzhou Xingye vs. Kangping Technology Co | Suzhou Xingye vs. Vohringer Home Technology | Suzhou Xingye vs. Quectel Wireless Solutions |
| Shenzhen Glory vs. Shanghai Broadband Technology | Shenzhen Glory vs. Bohai Leasing Co | Shenzhen Glory vs. Gansu Huangtai Wine marketing | Shenzhen Glory vs. XiAn Dagang Road |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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