Correlation Between Suzhou Oriental and Shenwu Energy
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By analyzing existing cross correlation between Suzhou Oriental Semiconductor and Shenwu Energy Saving, you can compare the effects of market volatilities on Suzhou Oriental and Shenwu Energy 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 Oriental with a short position of Shenwu Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Oriental and Shenwu Energy.
Diversification Opportunities for Suzhou Oriental and Shenwu Energy
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Suzhou and Shenwu is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Oriental Semiconductor and Shenwu Energy Saving in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenwu Energy Saving and Suzhou Oriental 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 Oriental Semiconductor are associated (or correlated) with Shenwu Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenwu Energy Saving has no effect on the direction of Suzhou Oriental i.e., Suzhou Oriental and Shenwu Energy go up and down completely randomly.
Pair Corralation between Suzhou Oriental and Shenwu Energy
Assuming the 90 days trading horizon Suzhou Oriental Semiconductor is expected to generate 0.57 times more return on investment than Shenwu Energy. However, Suzhou Oriental Semiconductor is 1.75 times less risky than Shenwu Energy. It trades about -0.06 of its potential returns per unit of risk. Shenwu Energy Saving is currently generating about -0.11 per unit of risk. If you would invest 4,300 in Suzhou Oriental Semiconductor on January 2, 2025 and sell it today you would lose (138.00) from holding Suzhou Oriental Semiconductor or give up 3.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Suzhou Oriental Semiconductor vs. Shenwu Energy Saving
Performance |
| Timeline |
| Suzhou Oriental Semi |
| Shenwu Energy Saving |
Suzhou Oriental and Shenwu Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Oriental and Shenwu Energy
The main advantage of trading using opposite Suzhou Oriental and Shenwu Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Oriental position performs unexpectedly, Shenwu Energy 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 Shenwu Energy will offset losses from the drop in Shenwu Energy's long position.| Suzhou Oriental vs. Eastroc Beverage Group | Suzhou Oriental vs. Fujian Anjoy Foods | Suzhou Oriental vs. Anji Foodstuff Co | Suzhou Oriental vs. Jinhe Biotechnology Co |
| Shenwu Energy vs. Dymatic Chemicals | Shenwu Energy vs. Strait Innovation Internet | Shenwu Energy vs. Sichuan Jinshi Technology | Shenwu Energy vs. BlueFocus Communication Group |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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