Correlation Between Suzhou Xingye and Super Dragon
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By analyzing existing cross correlation between Suzhou Xingye Material and Super Dragon Engineering Plastics, you can compare the effects of market volatilities on Suzhou Xingye and Super Dragon 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 Super Dragon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Xingye and Super Dragon.
Diversification Opportunities for Suzhou Xingye and Super Dragon
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Suzhou and Super is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Xingye Material and Super Dragon Engineering Plast in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Super Dragon Enginee 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 Super Dragon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Super Dragon Enginee has no effect on the direction of Suzhou Xingye i.e., Suzhou Xingye and Super Dragon go up and down completely randomly.
Pair Corralation between Suzhou Xingye and Super Dragon
Assuming the 90 days trading horizon Suzhou Xingye Material is expected to under-perform the Super Dragon. But the stock apears to be less risky and, when comparing its historical volatility, Suzhou Xingye Material is 1.39 times less risky than Super Dragon. The stock trades about 0.0 of its potential returns per unit of risk. The Super Dragon Engineering Plastics is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 3,700 in Super Dragon Engineering Plastics on September 12, 2024 and sell it today you would earn a total of 461.00 from holding Super Dragon Engineering Plastics or generate 12.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Suzhou Xingye Material vs. Super Dragon Engineering Plast
Performance |
| Timeline |
| Suzhou Xingye Material |
| Super Dragon Enginee |
Suzhou Xingye and Super Dragon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Xingye and Super Dragon
The main advantage of trading using opposite Suzhou Xingye and Super Dragon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Xingye position performs unexpectedly, Super Dragon 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 Super Dragon will offset losses from the drop in Super Dragon's long position.| Suzhou Xingye vs. Zijin Mining Group | Suzhou Xingye vs. Wanhua Chemical Group | Suzhou Xingye vs. Baoshan Iron Steel | Suzhou Xingye vs. Rongsheng Petrochemical Co |
| Super Dragon vs. Agricultural Bank of | Super Dragon vs. Industrial and Commercial | Super Dragon vs. Bank of China | Super Dragon vs. PetroChina Co Ltd |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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