Correlation Between Suzhou Xingye and Tianjin Silvery
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By analyzing existing cross correlation between Suzhou Xingye Material and Tianjin Silvery Dragon, you can compare the effects of market volatilities on Suzhou Xingye and Tianjin Silvery 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 Tianjin Silvery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Xingye and Tianjin Silvery.
Diversification Opportunities for Suzhou Xingye and Tianjin Silvery
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Suzhou and Tianjin is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Xingye Material and Tianjin Silvery Dragon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianjin Silvery Dragon 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 Tianjin Silvery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianjin Silvery Dragon has no effect on the direction of Suzhou Xingye i.e., Suzhou Xingye and Tianjin Silvery go up and down completely randomly.
Pair Corralation between Suzhou Xingye and Tianjin Silvery
Assuming the 90 days trading horizon Suzhou Xingye Material is expected to under-perform the Tianjin Silvery. In addition to that, Suzhou Xingye is 1.14 times more volatile than Tianjin Silvery Dragon. It trades about -0.01 of its total potential returns per unit of risk. Tianjin Silvery Dragon is currently generating about 0.02 per unit of volatility. If you would invest 507.00 in Tianjin Silvery Dragon on October 16, 2024 and sell it today you would earn a total of 67.00 from holding Tianjin Silvery Dragon or generate 13.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Suzhou Xingye Material vs. Tianjin Silvery Dragon
Performance |
| Timeline |
| Suzhou Xingye Material |
| Tianjin Silvery Dragon |
Suzhou Xingye and Tianjin Silvery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Xingye and Tianjin Silvery
The main advantage of trading using opposite Suzhou Xingye and Tianjin Silvery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Xingye position performs unexpectedly, Tianjin Silvery 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 Tianjin Silvery will offset losses from the drop in Tianjin Silvery's long position.| Suzhou Xingye vs. Inspur Software Co | Suzhou Xingye vs. Shandong Hi Speed RoadBridge | Suzhou Xingye vs. Shaanxi Broadcast TV | Suzhou Xingye vs. Hangzhou Pinming Software |
| Tianjin Silvery vs. Fuda Alloy Materials | Tianjin Silvery vs. Guangzhou Automobile Group | Tianjin Silvery vs. Suzhou Xingye Material | Tianjin Silvery vs. Kangxin New Materials |
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 CEOs Directory module to screen CEOs from public companies around the world.
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