Correlation Between Suzhou Oriental and Hengdian Entertainment
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By analyzing existing cross correlation between Suzhou Oriental Semiconductor and Hengdian Entertainment Co, you can compare the effects of market volatilities on Suzhou Oriental and Hengdian Entertainment 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 Hengdian Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Oriental and Hengdian Entertainment.
Diversification Opportunities for Suzhou Oriental and Hengdian Entertainment
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Suzhou and Hengdian is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Oriental Semiconductor and Hengdian Entertainment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hengdian Entertainment 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 Hengdian Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hengdian Entertainment has no effect on the direction of Suzhou Oriental i.e., Suzhou Oriental and Hengdian Entertainment go up and down completely randomly.
Pair Corralation between Suzhou Oriental and Hengdian Entertainment
Assuming the 90 days trading horizon Suzhou Oriental Semiconductor is expected to under-perform the Hengdian Entertainment. But the stock apears to be less risky and, when comparing its historical volatility, Suzhou Oriental Semiconductor is 1.28 times less risky than Hengdian Entertainment. The stock trades about -0.21 of its potential returns per unit of risk. The Hengdian Entertainment Co is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,487 in Hengdian Entertainment Co on October 30, 2024 and sell it today you would lose (12.00) from holding Hengdian Entertainment Co or give up 0.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Suzhou Oriental Semiconductor vs. Hengdian Entertainment Co
Performance |
| Timeline |
| Suzhou Oriental Semi |
| Hengdian Entertainment |
Suzhou Oriental and Hengdian Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Oriental and Hengdian Entertainment
The main advantage of trading using opposite Suzhou Oriental and Hengdian Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Oriental position performs unexpectedly, Hengdian Entertainment 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 Hengdian Entertainment will offset losses from the drop in Hengdian Entertainment'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 |
| Hengdian Entertainment vs. GRG Banking Equipment | Hengdian Entertainment vs. Tongling Nonferrous Metals | Hengdian Entertainment vs. Industrial Bank Co | Hengdian Entertainment vs. Panda Financial Holding |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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