Correlation Between Suzhou Weizhixiang and XinJiang GuoTong
Specify exactly 2 symbols:
By analyzing existing cross correlation between Suzhou Weizhixiang Food and XinJiang GuoTong Pipeline, you can compare the effects of market volatilities on Suzhou Weizhixiang and XinJiang GuoTong 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 XinJiang GuoTong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Weizhixiang and XinJiang GuoTong.
Diversification Opportunities for Suzhou Weizhixiang and XinJiang GuoTong
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Suzhou and XinJiang is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Weizhixiang Food and XinJiang GuoTong Pipeline in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XinJiang GuoTong Pipeline 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 XinJiang GuoTong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XinJiang GuoTong Pipeline has no effect on the direction of Suzhou Weizhixiang i.e., Suzhou Weizhixiang and XinJiang GuoTong go up and down completely randomly.
Pair Corralation between Suzhou Weizhixiang and XinJiang GuoTong
Assuming the 90 days trading horizon Suzhou Weizhixiang Food is expected to generate 0.96 times more return on investment than XinJiang GuoTong. However, Suzhou Weizhixiang Food is 1.04 times less risky than XinJiang GuoTong. It trades about -0.03 of its potential returns per unit of risk. XinJiang GuoTong Pipeline is currently generating about -0.04 per unit of risk. If you would invest 2,500 in Suzhou Weizhixiang Food on October 30, 2024 and sell it today you would lose (184.00) from holding Suzhou Weizhixiang Food or give up 7.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Suzhou Weizhixiang Food vs. XinJiang GuoTong Pipeline
Performance |
| Timeline |
| Suzhou Weizhixiang Food |
| XinJiang GuoTong Pipeline |
Suzhou Weizhixiang and XinJiang GuoTong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Weizhixiang and XinJiang GuoTong
The main advantage of trading using opposite Suzhou Weizhixiang and XinJiang GuoTong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Weizhixiang position performs unexpectedly, XinJiang GuoTong 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 XinJiang GuoTong will offset losses from the drop in XinJiang GuoTong's long position.| Suzhou Weizhixiang vs. Fujian Wanchen Biotechnology | Suzhou Weizhixiang vs. Sichuan Hebang Biotechnology | Suzhou Weizhixiang vs. AUPU Home Style | Suzhou Weizhixiang vs. Shandong Sanyuan Biotechnology |
| XinJiang GuoTong vs. Jiangsu Financial Leasing | XinJiang GuoTong vs. East Money Information | XinJiang GuoTong vs. Rising Nonferrous Metals | XinJiang GuoTong vs. Emdoor Information Co |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |