Correlation Between Suzhou Oriental and Shandong Sanyuan
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By analyzing existing cross correlation between Suzhou Oriental Semiconductor and Shandong Sanyuan Biotechnology, you can compare the effects of market volatilities on Suzhou Oriental and Shandong Sanyuan 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 Shandong Sanyuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Oriental and Shandong Sanyuan.
Diversification Opportunities for Suzhou Oriental and Shandong Sanyuan
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Suzhou and Shandong is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Oriental Semiconductor and Shandong Sanyuan Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Sanyuan Bio 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 Shandong Sanyuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Sanyuan Bio has no effect on the direction of Suzhou Oriental i.e., Suzhou Oriental and Shandong Sanyuan go up and down completely randomly.
Pair Corralation between Suzhou Oriental and Shandong Sanyuan
Assuming the 90 days trading horizon Suzhou Oriental Semiconductor is expected to under-perform the Shandong Sanyuan. In addition to that, Suzhou Oriental is 1.71 times more volatile than Shandong Sanyuan Biotechnology. It trades about -0.1 of its total potential returns per unit of risk. Shandong Sanyuan Biotechnology is currently generating about 0.1 per unit of volatility. If you would invest 2,532 in Shandong Sanyuan Biotechnology on November 3, 2024 and sell it today you would earn a total of 69.00 from holding Shandong Sanyuan Biotechnology or generate 2.73% 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. Shandong Sanyuan Biotechnology
Performance |
| Timeline |
| Suzhou Oriental Semi |
| Shandong Sanyuan Bio |
Suzhou Oriental and Shandong Sanyuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Oriental and Shandong Sanyuan
The main advantage of trading using opposite Suzhou Oriental and Shandong Sanyuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Oriental position performs unexpectedly, Shandong Sanyuan 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 Shandong Sanyuan will offset losses from the drop in Shandong Sanyuan's long position.| Suzhou Oriental vs. BrightGene Bio Medical | Suzhou Oriental vs. Sino Medical Sciences | Suzhou Oriental vs. Jinhe Biotechnology Co | Suzhou Oriental vs. Wuhan Hvsen Biotechnology |
| Shandong Sanyuan vs. Financial Street Holdings | Shandong Sanyuan vs. Tibet Huayu Mining | Shandong Sanyuan vs. Ping An Insurance | Shandong Sanyuan vs. Shenzhen Shenbao Industrial |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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