Correlation Between Suzhou Weizhixiang and Sinocelltech Group
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By analyzing existing cross correlation between Suzhou Weizhixiang Food and Sinocelltech Group, you can compare the effects of market volatilities on Suzhou Weizhixiang and Sinocelltech Group 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 Sinocelltech Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Weizhixiang and Sinocelltech Group.
Diversification Opportunities for Suzhou Weizhixiang and Sinocelltech Group
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Suzhou and Sinocelltech is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Weizhixiang Food and Sinocelltech Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinocelltech 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 Sinocelltech Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinocelltech Group has no effect on the direction of Suzhou Weizhixiang i.e., Suzhou Weizhixiang and Sinocelltech Group go up and down completely randomly.
Pair Corralation between Suzhou Weizhixiang and Sinocelltech Group
Assuming the 90 days trading horizon Suzhou Weizhixiang Food is expected to under-perform the Sinocelltech Group. In addition to that, Suzhou Weizhixiang is 1.45 times more volatile than Sinocelltech Group. It trades about -0.16 of its total potential returns per unit of risk. Sinocelltech Group is currently generating about 0.05 per unit of volatility. If you would invest 3,528 in Sinocelltech Group on November 3, 2024 and sell it today you would earn a total of 56.00 from holding Sinocelltech Group or generate 1.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Suzhou Weizhixiang Food vs. Sinocelltech Group
Performance |
| Timeline |
| Suzhou Weizhixiang Food |
| Sinocelltech Group |
Suzhou Weizhixiang and Sinocelltech Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Weizhixiang and Sinocelltech Group
The main advantage of trading using opposite Suzhou Weizhixiang and Sinocelltech Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Weizhixiang position performs unexpectedly, Sinocelltech Group 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 Sinocelltech Group will offset losses from the drop in Sinocelltech Group's long position.| Suzhou Weizhixiang vs. China Longyuan Power | Suzhou Weizhixiang vs. PetroChina Co Ltd | Suzhou Weizhixiang vs. Guangxi Guiguan Electric | Suzhou Weizhixiang vs. Yantai North Andre |
| Sinocelltech Group vs. Eyebright Medical Technology | Sinocelltech Group vs. APT Medical | Sinocelltech Group vs. Nanjing Putian Telecommunications | Sinocelltech Group vs. Dingli Communications Corp |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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