Correlation Between Suzhou Oriental and Do Fluoride
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By analyzing existing cross correlation between Suzhou Oriental Semiconductor and Do Fluoride Chemicals Co, you can compare the effects of market volatilities on Suzhou Oriental and Do Fluoride 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 Do Fluoride. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Oriental and Do Fluoride.
Diversification Opportunities for Suzhou Oriental and Do Fluoride
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Suzhou and 002407 is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Oriental Semiconductor and Do Fluoride Chemicals Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Do Fluoride Chemicals 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 Do Fluoride. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Do Fluoride Chemicals has no effect on the direction of Suzhou Oriental i.e., Suzhou Oriental and Do Fluoride go up and down completely randomly.
Pair Corralation between Suzhou Oriental and Do Fluoride
Assuming the 90 days trading horizon Suzhou Oriental is expected to generate 2.63 times less return on investment than Do Fluoride. In addition to that, Suzhou Oriental is 1.49 times more volatile than Do Fluoride Chemicals Co. It trades about 0.01 of its total potential returns per unit of risk. Do Fluoride Chemicals Co is currently generating about 0.03 per unit of volatility. If you would invest 1,106 in Do Fluoride Chemicals Co on October 18, 2024 and sell it today you would earn a total of 48.00 from holding Do Fluoride Chemicals Co or generate 4.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Suzhou Oriental Semiconductor vs. Do Fluoride Chemicals Co
Performance |
| Timeline |
| Suzhou Oriental Semi |
| Do Fluoride Chemicals |
Suzhou Oriental and Do Fluoride Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Oriental and Do Fluoride
The main advantage of trading using opposite Suzhou Oriental and Do Fluoride positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Oriental position performs unexpectedly, Do Fluoride 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 Do Fluoride will offset losses from the drop in Do Fluoride's long position.| Suzhou Oriental vs. Tongyu Communication | Suzhou Oriental vs. Guangdong Jingyi Metal | Suzhou Oriental vs. Tianjin Hi Tech Development | Suzhou Oriental vs. Shanghai Shibei Hi Tech |
| Do Fluoride vs. East Money Information | Do Fluoride vs. GRINM Semiconductor Materials | Do Fluoride vs. Thinkon Semiconductor Jinzhou | Do Fluoride vs. Suzhou Oriental Semiconductor |
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 Stocks Directory module to find actively traded stocks across global markets.
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