Correlation Between Hangzhou Arcvideo and Soochow Suzhou
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By analyzing existing cross correlation between Hangzhou Arcvideo Technology and Soochow Suzhou Industrial, you can compare the effects of market volatilities on Hangzhou Arcvideo 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 Arcvideo with a short position of Soochow Suzhou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hangzhou Arcvideo and Soochow Suzhou.
Diversification Opportunities for Hangzhou Arcvideo and Soochow Suzhou
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Hangzhou and Soochow is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Hangzhou Arcvideo Technology 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 Arcvideo 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 Arcvideo Technology 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 Arcvideo i.e., Hangzhou Arcvideo and Soochow Suzhou go up and down completely randomly.
Pair Corralation between Hangzhou Arcvideo and Soochow Suzhou
Assuming the 90 days trading horizon Hangzhou Arcvideo Technology is expected to generate 4.73 times more return on investment than Soochow Suzhou. However, Hangzhou Arcvideo is 4.73 times more volatile than Soochow Suzhou Industrial. It trades about 0.02 of its potential returns per unit of risk. Soochow Suzhou Industrial is currently generating about -0.03 per unit of risk. If you would invest 3,383 in Hangzhou Arcvideo Technology on October 30, 2024 and sell it today you would lose (648.00) from holding Hangzhou Arcvideo Technology or give up 19.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hangzhou Arcvideo Technology vs. Soochow Suzhou Industrial
Performance |
| Timeline |
| Hangzhou Arcvideo |
| Soochow Suzhou Industrial |
Hangzhou Arcvideo and Soochow Suzhou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hangzhou Arcvideo and Soochow Suzhou
The main advantage of trading using opposite Hangzhou Arcvideo and Soochow Suzhou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hangzhou Arcvideo 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 Arcvideo vs. Industrial and Commercial | Hangzhou Arcvideo vs. Agricultural Bank of | Hangzhou Arcvideo vs. China Construction Bank | Hangzhou Arcvideo vs. Bank of China |
| Soochow Suzhou vs. Industrial and Commercial | Soochow Suzhou vs. Kweichow Moutai Co | Soochow Suzhou vs. Agricultural Bank of | Soochow Suzhou 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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