Correlation Between Suzhou Oriental and Sunwoda Electronic
Specify exactly 2 symbols:
By analyzing existing cross correlation between Suzhou Oriental Semiconductor and Sunwoda Electronic, you can compare the effects of market volatilities on Suzhou Oriental and Sunwoda Electronic 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 Sunwoda Electronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Oriental and Sunwoda Electronic.
Diversification Opportunities for Suzhou Oriental and Sunwoda Electronic
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Suzhou and Sunwoda is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Oriental Semiconductor and Sunwoda Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunwoda Electronic 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 Sunwoda Electronic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sunwoda Electronic has no effect on the direction of Suzhou Oriental i.e., Suzhou Oriental and Sunwoda Electronic go up and down completely randomly.
Pair Corralation between Suzhou Oriental and Sunwoda Electronic
Assuming the 90 days trading horizon Suzhou Oriental Semiconductor is expected to under-perform the Sunwoda Electronic. In addition to that, Suzhou Oriental is 1.26 times more volatile than Sunwoda Electronic. It trades about -0.03 of its total potential returns per unit of risk. Sunwoda Electronic is currently generating about 0.08 per unit of volatility. If you would invest 1,255 in Sunwoda Electronic on October 18, 2024 and sell it today you would earn a total of 847.00 from holding Sunwoda Electronic or generate 67.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Suzhou Oriental Semiconductor vs. Sunwoda Electronic
Performance |
| Timeline |
| Suzhou Oriental Semi |
| Sunwoda Electronic |
Suzhou Oriental and Sunwoda Electronic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Oriental and Sunwoda Electronic
The main advantage of trading using opposite Suzhou Oriental and Sunwoda Electronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Oriental position performs unexpectedly, Sunwoda Electronic 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 Sunwoda Electronic will offset losses from the drop in Sunwoda Electronic'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 |
| Sunwoda Electronic vs. Ping An Insurance | Sunwoda Electronic vs. Easyhome New Retail | Sunwoda Electronic vs. Postal Savings Bank | Sunwoda Electronic vs. Unisplendour 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |