Correlation Between Suzhou Xingye and Renxin New
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By analyzing existing cross correlation between Suzhou Xingye Material and Renxin New Material, you can compare the effects of market volatilities on Suzhou Xingye and Renxin New 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 Renxin New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Xingye and Renxin New.
Diversification Opportunities for Suzhou Xingye and Renxin New
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Suzhou and Renxin is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Xingye Material and Renxin New Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Renxin New Material 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 Renxin New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Renxin New Material has no effect on the direction of Suzhou Xingye i.e., Suzhou Xingye and Renxin New go up and down completely randomly.
Pair Corralation between Suzhou Xingye and Renxin New
Assuming the 90 days trading horizon Suzhou Xingye Material is expected to generate 0.86 times more return on investment than Renxin New. However, Suzhou Xingye Material is 1.17 times less risky than Renxin New. It trades about 0.0 of its potential returns per unit of risk. Renxin New Material is currently generating about -0.04 per unit of risk. If you would invest 1,132 in Suzhou Xingye Material on September 1, 2024 and sell it today you would lose (197.00) from holding Suzhou Xingye Material or give up 17.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 96.93% |
| Values | Daily Returns |
Suzhou Xingye Material vs. Renxin New Material
Performance |
| Timeline |
| Suzhou Xingye Material |
| Renxin New Material |
Suzhou Xingye and Renxin New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Xingye and Renxin New
The main advantage of trading using opposite Suzhou Xingye and Renxin New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Xingye position performs unexpectedly, Renxin New 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 Renxin New will offset losses from the drop in Renxin New's long position.| Suzhou Xingye vs. Zijin Mining Group | Suzhou Xingye vs. Wanhua Chemical Group | Suzhou Xingye vs. Baoshan Iron Steel | Suzhou Xingye vs. Shandong Gold Mining |
| Renxin New vs. Lander Sports Development | Renxin New vs. Kangping Technology Co | Renxin New vs. Hengdian Entertainment Co | Renxin New vs. Sportsoul 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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