Correlation Between Suzhou Weizhixiang and Shengda Mining
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By analyzing existing cross correlation between Suzhou Weizhixiang Food and Shengda Mining Co, you can compare the effects of market volatilities on Suzhou Weizhixiang and Shengda Mining 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 Weizhixiang with a short position of Shengda Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Weizhixiang and Shengda Mining.
Diversification Opportunities for Suzhou Weizhixiang and Shengda Mining
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Suzhou and Shengda is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Weizhixiang Food and Shengda Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shengda Mining and Suzhou Weizhixiang 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 Weizhixiang Food are associated (or correlated) with Shengda Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shengda Mining has no effect on the direction of Suzhou Weizhixiang i.e., Suzhou Weizhixiang and Shengda Mining go up and down completely randomly.
Pair Corralation between Suzhou Weizhixiang and Shengda Mining
Assuming the 90 days trading horizon Suzhou Weizhixiang Food is expected to generate 1.39 times more return on investment than Shengda Mining. However, Suzhou Weizhixiang is 1.39 times more volatile than Shengda Mining Co. It trades about 0.25 of its potential returns per unit of risk. Shengda Mining Co is currently generating about -0.32 per unit of risk. If you would invest 2,091 in Suzhou Weizhixiang Food on August 31, 2024 and sell it today you would earn a total of 409.00 from holding Suzhou Weizhixiang Food or generate 19.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Suzhou Weizhixiang Food vs. Shengda Mining Co
Performance |
| Timeline |
| Suzhou Weizhixiang Food |
| Shengda Mining |
Suzhou Weizhixiang and Shengda Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Weizhixiang and Shengda Mining
The main advantage of trading using opposite Suzhou Weizhixiang and Shengda Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Weizhixiang position performs unexpectedly, Shengda Mining 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 Shengda Mining will offset losses from the drop in Shengda Mining's long position.| Suzhou Weizhixiang vs. Xiangyang Automobile Bearing | Suzhou Weizhixiang vs. Everjoy Health Group | Suzhou Weizhixiang vs. Hangzhou Minsheng Healthcare | Suzhou Weizhixiang vs. By health |
| Shengda Mining vs. Juewei Food Co | Shengda Mining vs. Tianjin Pengling Rubber | Shengda Mining vs. Jiangsu Financial Leasing | Shengda Mining vs. Guangzhou Tinci 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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