Correlation Between Suzhou Weizhixiang and Chongqing Sokon
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By analyzing existing cross correlation between Suzhou Weizhixiang Food and Chongqing Sokon Ind, you can compare the effects of market volatilities on Suzhou Weizhixiang and Chongqing Sokon 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 Chongqing Sokon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Weizhixiang and Chongqing Sokon.
Diversification Opportunities for Suzhou Weizhixiang and Chongqing Sokon
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Suzhou and Chongqing is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Weizhixiang Food and Chongqing Sokon Ind in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chongqing Sokon Ind 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 Chongqing Sokon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chongqing Sokon Ind has no effect on the direction of Suzhou Weizhixiang i.e., Suzhou Weizhixiang and Chongqing Sokon go up and down completely randomly.
Pair Corralation between Suzhou Weizhixiang and Chongqing Sokon
Assuming the 90 days trading horizon Suzhou Weizhixiang Food is expected to under-perform the Chongqing Sokon. In addition to that, Suzhou Weizhixiang is 1.14 times more volatile than Chongqing Sokon Ind. It trades about -0.16 of its total potential returns per unit of risk. Chongqing Sokon Ind is currently generating about 0.08 per unit of volatility. If you would invest 12,854 in Chongqing Sokon Ind on November 2, 2024 and sell it today you would earn a total of 425.00 from holding Chongqing Sokon Ind or generate 3.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Suzhou Weizhixiang Food vs. Chongqing Sokon Ind
Performance |
| Timeline |
| Suzhou Weizhixiang Food |
| Chongqing Sokon Ind |
Suzhou Weizhixiang and Chongqing Sokon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Weizhixiang and Chongqing Sokon
The main advantage of trading using opposite Suzhou Weizhixiang and Chongqing Sokon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Weizhixiang position performs unexpectedly, Chongqing Sokon 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 Chongqing Sokon will offset losses from the drop in Chongqing Sokon's long position.| Suzhou Weizhixiang vs. Eyebright Medical Technology | Suzhou Weizhixiang vs. Dhc Software Co | Suzhou Weizhixiang vs. Jiangsu Xinri E Vehicle | Suzhou Weizhixiang vs. Cabio Biotech Wuhan |
| Chongqing Sokon vs. Guangzhou Automobile Group | Chongqing Sokon vs. AUPU Home Style | Chongqing Sokon vs. Zhejiang Qianjiang Motorcycle | Chongqing Sokon vs. Zotye Automobile 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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