Correlation Between Suzhou Xingye and Dongxing Sec
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By analyzing existing cross correlation between Suzhou Xingye Material and Dongxing Sec Co, you can compare the effects of market volatilities on Suzhou Xingye and Dongxing Sec 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 Dongxing Sec. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Xingye and Dongxing Sec.
Diversification Opportunities for Suzhou Xingye and Dongxing Sec
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Suzhou and Dongxing is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Xingye Material and Dongxing Sec Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongxing Sec 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 Dongxing Sec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongxing Sec has no effect on the direction of Suzhou Xingye i.e., Suzhou Xingye and Dongxing Sec go up and down completely randomly.
Pair Corralation between Suzhou Xingye and Dongxing Sec
Assuming the 90 days trading horizon Suzhou Xingye Material is expected to generate 1.13 times more return on investment than Dongxing Sec. However, Suzhou Xingye is 1.13 times more volatile than Dongxing Sec Co. It trades about -0.02 of its potential returns per unit of risk. Dongxing Sec Co is currently generating about -0.11 per unit of risk. If you would invest 1,013 in Suzhou Xingye Material on September 13, 2024 and sell it today you would lose (20.00) from holding Suzhou Xingye Material or give up 1.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Suzhou Xingye Material vs. Dongxing Sec Co
Performance |
| Timeline |
| Suzhou Xingye Material |
| Dongxing Sec |
Suzhou Xingye and Dongxing Sec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Xingye and Dongxing Sec
The main advantage of trading using opposite Suzhou Xingye and Dongxing Sec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Xingye position performs unexpectedly, Dongxing Sec 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 Dongxing Sec will offset losses from the drop in Dongxing Sec'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 |
| Dongxing Sec vs. Zhongtong Guomai Communication | Dongxing Sec vs. Harbin Air Conditioning | Dongxing Sec vs. Sunwave Communications Co | Dongxing Sec vs. Fiberhome Telecommunication Technologies |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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