Correlation Between Suzhou Weizhixiang and Hunan Mendale
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By analyzing existing cross correlation between Suzhou Weizhixiang Food and Hunan Mendale Hometextile, you can compare the effects of market volatilities on Suzhou Weizhixiang and Hunan Mendale 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 Hunan Mendale. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Weizhixiang and Hunan Mendale.
Diversification Opportunities for Suzhou Weizhixiang and Hunan Mendale
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Suzhou and Hunan is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Weizhixiang Food and Hunan Mendale Hometextile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunan Mendale Hometextile 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 Hunan Mendale. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hunan Mendale Hometextile has no effect on the direction of Suzhou Weizhixiang i.e., Suzhou Weizhixiang and Hunan Mendale go up and down completely randomly.
Pair Corralation between Suzhou Weizhixiang and Hunan Mendale
Assuming the 90 days trading horizon Suzhou Weizhixiang is expected to generate 2.68 times less return on investment than Hunan Mendale. But when comparing it to its historical volatility, Suzhou Weizhixiang Food is 1.76 times less risky than Hunan Mendale. It trades about 0.2 of its potential returns per unit of risk. Hunan Mendale Hometextile is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 324.00 in Hunan Mendale Hometextile on November 25, 2024 and sell it today you would earn a total of 66.00 from holding Hunan Mendale Hometextile or generate 20.37% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Suzhou Weizhixiang Food vs. Hunan Mendale Hometextile
Performance |
Timeline |
Suzhou Weizhixiang Food |
Hunan Mendale Hometextile |
Suzhou Weizhixiang and Hunan Mendale Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Suzhou Weizhixiang and Hunan Mendale
The main advantage of trading using opposite Suzhou Weizhixiang and Hunan Mendale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Weizhixiang position performs unexpectedly, Hunan Mendale 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 Hunan Mendale will offset losses from the drop in Hunan Mendale's long position.Suzhou Weizhixiang vs. Giantec Semiconductor Corp | ||
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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 Transaction History module to view history of all your transactions and understand their impact on performance.
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