Correlation Between Suzhou Weizhixiang and Chison Medical
Specify exactly 2 symbols:
By analyzing existing cross correlation between Suzhou Weizhixiang Food and Chison Medical Technologies, you can compare the effects of market volatilities on Suzhou Weizhixiang and Chison Medical 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 Chison Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Weizhixiang and Chison Medical.
Diversification Opportunities for Suzhou Weizhixiang and Chison Medical
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Suzhou and Chison is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Weizhixiang Food and Chison Medical Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chison Medical Techn 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 Chison Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chison Medical Techn has no effect on the direction of Suzhou Weizhixiang i.e., Suzhou Weizhixiang and Chison Medical go up and down completely randomly.
Pair Corralation between Suzhou Weizhixiang and Chison Medical
Assuming the 90 days trading horizon Suzhou Weizhixiang Food is expected to generate 0.85 times more return on investment than Chison Medical. However, Suzhou Weizhixiang Food is 1.17 times less risky than Chison Medical. It trades about -0.01 of its potential returns per unit of risk. Chison Medical Technologies is currently generating about -0.02 per unit of risk. If you would invest 3,544 in Suzhou Weizhixiang Food on September 14, 2024 and sell it today you would lose (459.00) from holding Suzhou Weizhixiang Food or give up 12.95% 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. Chison Medical Technologies
Performance |
| Timeline |
| Suzhou Weizhixiang Food |
| Chison Medical Techn |
Suzhou Weizhixiang and Chison Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Weizhixiang and Chison Medical
The main advantage of trading using opposite Suzhou Weizhixiang and Chison Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Weizhixiang position performs unexpectedly, Chison Medical 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 Chison Medical will offset losses from the drop in Chison Medical's long position.| Suzhou Weizhixiang vs. Xilinmen Furniture Co | Suzhou Weizhixiang vs. Jonjee Hi tech Industrial | Suzhou Weizhixiang vs. Jiangxi Hengda Hi Tech | Suzhou Weizhixiang vs. Suofeiya Home Collection |
| Chison Medical vs. Industrial and Commercial | Chison Medical vs. Kweichow Moutai Co | Chison Medical vs. Agricultural Bank of | Chison Medical vs. China Mobile Limited |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |