Correlation Between Hangzhou Huawang and Soochow Suzhou
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By analyzing existing cross correlation between Hangzhou Huawang New and Soochow Suzhou Industrial, you can compare the effects of market volatilities on Hangzhou Huawang and Soochow Suzhou 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 Hangzhou Huawang with a short position of Soochow Suzhou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hangzhou Huawang and Soochow Suzhou.
Diversification Opportunities for Hangzhou Huawang and Soochow Suzhou
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hangzhou and Soochow is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Hangzhou Huawang New and Soochow Suzhou Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Soochow Suzhou Industrial and Hangzhou Huawang 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 Hangzhou Huawang New are associated (or correlated) with Soochow Suzhou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Soochow Suzhou Industrial has no effect on the direction of Hangzhou Huawang i.e., Hangzhou Huawang and Soochow Suzhou go up and down completely randomly.
Pair Corralation between Hangzhou Huawang and Soochow Suzhou
Assuming the 90 days trading horizon Hangzhou Huawang New is expected to under-perform the Soochow Suzhou. In addition to that, Hangzhou Huawang is 1.53 times more volatile than Soochow Suzhou Industrial. It trades about -0.3 of its total potential returns per unit of risk. Soochow Suzhou Industrial is currently generating about 0.47 per unit of volatility. If you would invest 336.00 in Soochow Suzhou Industrial on October 29, 2024 and sell it today you would earn a total of 25.00 from holding Soochow Suzhou Industrial or generate 7.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hangzhou Huawang New vs. Soochow Suzhou Industrial
Performance |
| Timeline |
| Hangzhou Huawang New |
| Soochow Suzhou Industrial |
Hangzhou Huawang and Soochow Suzhou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hangzhou Huawang and Soochow Suzhou
The main advantage of trading using opposite Hangzhou Huawang and Soochow Suzhou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hangzhou Huawang position performs unexpectedly, Soochow Suzhou 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 Soochow Suzhou will offset losses from the drop in Soochow Suzhou's long position.| Hangzhou Huawang vs. Cowealth Medical China | Hangzhou Huawang vs. Innovative Medical Management | Hangzhou Huawang vs. Pengxin International Mining | Hangzhou Huawang vs. Qingdao Haier Biomedical |
| Soochow Suzhou vs. Hua Xia Bank | Soochow Suzhou vs. King Strong New Material | Soochow Suzhou vs. Konfoong Materials International | Soochow Suzhou vs. Ping An Insurance |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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