Correlation Between Suzhou Xingye and Zhejiang Construction
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By analyzing existing cross correlation between Suzhou Xingye Material and Zhejiang Construction Investment, you can compare the effects of market volatilities on Suzhou Xingye and Zhejiang Construction 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 Zhejiang Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Xingye and Zhejiang Construction.
Diversification Opportunities for Suzhou Xingye and Zhejiang Construction
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Suzhou and Zhejiang is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Xingye Material and Zhejiang Construction Investme in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Construction 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 Zhejiang Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Construction has no effect on the direction of Suzhou Xingye i.e., Suzhou Xingye and Zhejiang Construction go up and down completely randomly.
Pair Corralation between Suzhou Xingye and Zhejiang Construction
Assuming the 90 days trading horizon Suzhou Xingye Material is expected to generate 1.01 times more return on investment than Zhejiang Construction. However, Suzhou Xingye is 1.01 times more volatile than Zhejiang Construction Investment. It trades about 0.0 of its potential returns per unit of risk. Zhejiang Construction Investment is currently generating about -0.03 per unit of risk. If you would invest 1,120 in Suzhou Xingye Material on August 30, 2024 and sell it today you would lose (213.00) from holding Suzhou Xingye Material or give up 19.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.74% |
| Values | Daily Returns |
Suzhou Xingye Material vs. Zhejiang Construction Investme
Performance |
| Timeline |
| Suzhou Xingye Material |
| Zhejiang Construction |
Suzhou Xingye and Zhejiang Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Xingye and Zhejiang Construction
The main advantage of trading using opposite Suzhou Xingye and Zhejiang Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Xingye position performs unexpectedly, Zhejiang Construction 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 Zhejiang Construction will offset losses from the drop in Zhejiang Construction'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 |
| Zhejiang Construction vs. Agricultural Bank of | Zhejiang Construction vs. Industrial and Commercial | Zhejiang Construction vs. Bank of China | Zhejiang Construction vs. China Construction Bank |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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