Correlation Between Suzhou Mingzhi and Shandong Longda
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By analyzing existing cross correlation between Suzhou Mingzhi Technology and Shandong Longda Meat, you can compare the effects of market volatilities on Suzhou Mingzhi and Shandong Longda 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 Mingzhi with a short position of Shandong Longda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Mingzhi and Shandong Longda.
Diversification Opportunities for Suzhou Mingzhi and Shandong Longda
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Suzhou and Shandong is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Mingzhi Technology and Shandong Longda Meat in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Longda Meat and Suzhou Mingzhi 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 Mingzhi Technology are associated (or correlated) with Shandong Longda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Longda Meat has no effect on the direction of Suzhou Mingzhi i.e., Suzhou Mingzhi and Shandong Longda go up and down completely randomly.
Pair Corralation between Suzhou Mingzhi and Shandong Longda
Assuming the 90 days trading horizon Suzhou Mingzhi Technology is expected to generate 1.68 times more return on investment than Shandong Longda. However, Suzhou Mingzhi is 1.68 times more volatile than Shandong Longda Meat. It trades about 0.03 of its potential returns per unit of risk. Shandong Longda Meat is currently generating about -0.01 per unit of risk. If you would invest 1,532 in Suzhou Mingzhi Technology on October 18, 2024 and sell it today you would earn a total of 191.00 from holding Suzhou Mingzhi Technology or generate 12.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.58% |
| Values | Daily Returns |
Suzhou Mingzhi Technology vs. Shandong Longda Meat
Performance |
| Timeline |
| Suzhou Mingzhi Technology |
| Shandong Longda Meat |
Suzhou Mingzhi and Shandong Longda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Mingzhi and Shandong Longda
The main advantage of trading using opposite Suzhou Mingzhi and Shandong Longda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Mingzhi position performs unexpectedly, Shandong Longda 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 Longda will offset losses from the drop in Shandong Longda's long position.| Suzhou Mingzhi vs. Chahua Modern Housewares | Suzhou Mingzhi vs. Offcn Education Technology | Suzhou Mingzhi vs. BTG Hotels Group | Suzhou Mingzhi vs. Shandong Publishing Media |
| Shandong Longda vs. Shandong Sanyuan Biotechnology | Shandong Longda vs. Guangzhou Dongfang Hotel | Shandong Longda vs. Porton Fine Chemicals | Shandong Longda vs. Anhui Huaheng Biotechnology |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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