Correlation Between Suzhou Oriental and Zhejiang Yayi
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By analyzing existing cross correlation between Suzhou Oriental Semiconductor and Zhejiang Yayi Metal, you can compare the effects of market volatilities on Suzhou Oriental and Zhejiang Yayi 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 Zhejiang Yayi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Oriental and Zhejiang Yayi.
Diversification Opportunities for Suzhou Oriental and Zhejiang Yayi
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Suzhou and Zhejiang is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Oriental Semiconductor and Zhejiang Yayi Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Yayi Metal 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 Zhejiang Yayi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Yayi Metal has no effect on the direction of Suzhou Oriental i.e., Suzhou Oriental and Zhejiang Yayi go up and down completely randomly.
Pair Corralation between Suzhou Oriental and Zhejiang Yayi
Assuming the 90 days trading horizon Suzhou Oriental Semiconductor is expected to under-perform the Zhejiang Yayi. In addition to that, Suzhou Oriental is 1.1 times more volatile than Zhejiang Yayi Metal. It trades about -0.04 of its total potential returns per unit of risk. Zhejiang Yayi Metal is currently generating about -0.01 per unit of volatility. If you would invest 3,234 in Zhejiang Yayi Metal on October 30, 2024 and sell it today you would lose (856.00) from holding Zhejiang Yayi Metal or give up 26.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.61% |
| Values | Daily Returns |
Suzhou Oriental Semiconductor vs. Zhejiang Yayi Metal
Performance |
| Timeline |
| Suzhou Oriental Semi |
| Zhejiang Yayi Metal |
Suzhou Oriental and Zhejiang Yayi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Oriental and Zhejiang Yayi
The main advantage of trading using opposite Suzhou Oriental and Zhejiang Yayi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Oriental position performs unexpectedly, Zhejiang Yayi 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 Zhejiang Yayi will offset losses from the drop in Zhejiang Yayi's long position.| Suzhou Oriental vs. Cloud Live Technology | Suzhou Oriental vs. Nanjing Putian Telecommunications | Suzhou Oriental vs. Shenzhen Coship Electronics | Suzhou Oriental vs. Shenzhen Hifuture Electric |
| Zhejiang Yayi vs. Keda Clean Energy | Zhejiang Yayi vs. Ningbo Ligong Online | Zhejiang Yayi vs. Xiandai Investment Co | Zhejiang Yayi vs. Guangzhou Restaurants 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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