Correlation Between Suzhou Oriental and Fangda Special
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By analyzing existing cross correlation between Suzhou Oriental Semiconductor and Fangda Special Steel, you can compare the effects of market volatilities on Suzhou Oriental and Fangda Special 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 Fangda Special. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Oriental and Fangda Special.
Diversification Opportunities for Suzhou Oriental and Fangda Special
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Suzhou and Fangda is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Oriental Semiconductor and Fangda Special Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fangda Special Steel 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 Fangda Special. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fangda Special Steel has no effect on the direction of Suzhou Oriental i.e., Suzhou Oriental and Fangda Special go up and down completely randomly.
Pair Corralation between Suzhou Oriental and Fangda Special
Assuming the 90 days trading horizon Suzhou Oriental Semiconductor is expected to under-perform the Fangda Special. In addition to that, Suzhou Oriental is 2.47 times more volatile than Fangda Special Steel. It trades about -0.06 of its total potential returns per unit of risk. Fangda Special Steel is currently generating about -0.04 per unit of volatility. If you would invest 566.00 in Fangda Special Steel on October 29, 2024 and sell it today you would lose (154.00) from holding Fangda Special Steel or give up 27.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Suzhou Oriental Semiconductor vs. Fangda Special Steel
Performance |
| Timeline |
| Suzhou Oriental Semi |
| Fangda Special Steel |
Suzhou Oriental and Fangda Special Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Oriental and Fangda Special
The main advantage of trading using opposite Suzhou Oriental and Fangda Special positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Oriental position performs unexpectedly, Fangda Special 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 Fangda Special will offset losses from the drop in Fangda Special'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 |
| Fangda Special vs. Zijin Mining Group | Fangda Special vs. Wanhua Chemical Group | Fangda Special vs. Baoshan Iron Steel | Fangda Special vs. Shandong Gold Mining |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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