Correlation Between Suzhou Xingye and Jiangsu Seagull
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By analyzing existing cross correlation between Suzhou Xingye Material and Jiangsu Seagull Cooling, you can compare the effects of market volatilities on Suzhou Xingye and Jiangsu Seagull 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 Jiangsu Seagull. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Xingye and Jiangsu Seagull.
Diversification Opportunities for Suzhou Xingye and Jiangsu Seagull
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Suzhou and Jiangsu is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Xingye Material and Jiangsu Seagull Cooling in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Seagull Cooling 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 Jiangsu Seagull. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Seagull Cooling has no effect on the direction of Suzhou Xingye i.e., Suzhou Xingye and Jiangsu Seagull go up and down completely randomly.
Pair Corralation between Suzhou Xingye and Jiangsu Seagull
Assuming the 90 days trading horizon Suzhou Xingye Material is expected to generate 0.85 times more return on investment than Jiangsu Seagull. However, Suzhou Xingye Material is 1.17 times less risky than Jiangsu Seagull. It trades about 0.5 of its potential returns per unit of risk. Jiangsu Seagull Cooling is currently generating about 0.13 per unit of risk. If you would invest 873.00 in Suzhou Xingye Material on October 28, 2024 and sell it today you would earn a total of 579.00 from holding Suzhou Xingye Material or generate 66.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Suzhou Xingye Material vs. Jiangsu Seagull Cooling
Performance |
| Timeline |
| Suzhou Xingye Material |
| Jiangsu Seagull Cooling |
Suzhou Xingye and Jiangsu Seagull Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Xingye and Jiangsu Seagull
The main advantage of trading using opposite Suzhou Xingye and Jiangsu Seagull positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Xingye position performs unexpectedly, Jiangsu Seagull 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 Jiangsu Seagull will offset losses from the drop in Jiangsu Seagull'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 |
| Jiangsu Seagull vs. Soyea Technology Co | Jiangsu Seagull vs. Chengtun Mining Group | Jiangsu Seagull vs. Jiujiang Shanshui Technology | Jiangsu Seagull vs. iSoftStone Information Technology |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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