Correlation Between Suzhou Weizhixiang and Flat Glass
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By analyzing existing cross correlation between Suzhou Weizhixiang Food and Flat Glass Group, you can compare the effects of market volatilities on Suzhou Weizhixiang and Flat Glass 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 Flat Glass. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Weizhixiang and Flat Glass.
Diversification Opportunities for Suzhou Weizhixiang and Flat Glass
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Suzhou and Flat is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Weizhixiang Food and Flat Glass Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flat Glass Group 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 Flat Glass. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flat Glass Group has no effect on the direction of Suzhou Weizhixiang i.e., Suzhou Weizhixiang and Flat Glass go up and down completely randomly.
Pair Corralation between Suzhou Weizhixiang and Flat Glass
Assuming the 90 days trading horizon Suzhou Weizhixiang Food is expected to under-perform the Flat Glass. But the stock apears to be less risky and, when comparing its historical volatility, Suzhou Weizhixiang Food is 1.13 times less risky than Flat Glass. The stock trades about -0.04 of its potential returns per unit of risk. The Flat Glass Group is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 3,450 in Flat Glass Group on August 30, 2024 and sell it today you would lose (890.00) from holding Flat Glass Group or give up 25.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Suzhou Weizhixiang Food vs. Flat Glass Group
Performance |
| Timeline |
| Suzhou Weizhixiang Food |
| Flat Glass Group |
Suzhou Weizhixiang and Flat Glass Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Weizhixiang and Flat Glass
The main advantage of trading using opposite Suzhou Weizhixiang and Flat Glass positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Weizhixiang position performs unexpectedly, Flat Glass 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 Flat Glass will offset losses from the drop in Flat Glass' long position.| Suzhou Weizhixiang vs. PetroChina Co Ltd | Suzhou Weizhixiang vs. China Mobile Limited | Suzhou Weizhixiang vs. Ping An Insurance | Suzhou Weizhixiang vs. China Petroleum Chemical |
| Flat Glass vs. Xiandai Investment Co | Flat Glass vs. Digital China Information | Flat Glass vs. Zhongrun Resources Investment | Flat Glass vs. Yonyou Auto Information |
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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