Correlation Between Suzhou Weizhixiang and Heilongjiang Transport
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By analyzing existing cross correlation between Suzhou Weizhixiang Food and Heilongjiang Transport Development, you can compare the effects of market volatilities on Suzhou Weizhixiang and Heilongjiang Transport 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 Heilongjiang Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Weizhixiang and Heilongjiang Transport.
Diversification Opportunities for Suzhou Weizhixiang and Heilongjiang Transport
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Suzhou and Heilongjiang is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Weizhixiang Food and Heilongjiang Transport Develop in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heilongjiang Transport 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 Heilongjiang Transport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Heilongjiang Transport has no effect on the direction of Suzhou Weizhixiang i.e., Suzhou Weizhixiang and Heilongjiang Transport go up and down completely randomly.
Pair Corralation between Suzhou Weizhixiang and Heilongjiang Transport
Assuming the 90 days trading horizon Suzhou Weizhixiang Food is expected to under-perform the Heilongjiang Transport. But the stock apears to be less risky and, when comparing its historical volatility, Suzhou Weizhixiang Food is 1.13 times less risky than Heilongjiang Transport. The stock trades about -0.04 of its potential returns per unit of risk. The Heilongjiang Transport Development is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 306.00 in Heilongjiang Transport Development on October 12, 2024 and sell it today you would earn a total of 22.00 from holding Heilongjiang Transport Development or generate 7.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Suzhou Weizhixiang Food vs. Heilongjiang Transport Develop
Performance |
| Timeline |
| Suzhou Weizhixiang Food |
| Heilongjiang Transport |
Suzhou Weizhixiang and Heilongjiang Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Weizhixiang and Heilongjiang Transport
The main advantage of trading using opposite Suzhou Weizhixiang and Heilongjiang Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Weizhixiang position performs unexpectedly, Heilongjiang Transport 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 Heilongjiang Transport will offset losses from the drop in Heilongjiang Transport's long position.| Suzhou Weizhixiang vs. Xinya Electronic Co | Suzhou Weizhixiang vs. Guangzhou Dongfang Hotel | Suzhou Weizhixiang vs. Sihui Fuji Electronics | Suzhou Weizhixiang vs. Telling Telecommunication Holding |
| Heilongjiang Transport vs. Shanghai Ziyan Foods | Heilongjiang Transport vs. Jiangsu Xinri E Vehicle | Heilongjiang Transport vs. Sichuan Teway Food | Heilongjiang Transport vs. Suzhou Weizhixiang Food |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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