Correlation Between Suzhou Mingzhi and XiaMen HongXin
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By analyzing existing cross correlation between Suzhou Mingzhi Technology and XiaMen HongXin Electron tech, you can compare the effects of market volatilities on Suzhou Mingzhi and XiaMen HongXin 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 XiaMen HongXin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Mingzhi and XiaMen HongXin.
Diversification Opportunities for Suzhou Mingzhi and XiaMen HongXin
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Suzhou and XiaMen is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Mingzhi Technology and XiaMen HongXin Electron tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XiaMen HongXin Electron 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 XiaMen HongXin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XiaMen HongXin Electron has no effect on the direction of Suzhou Mingzhi i.e., Suzhou Mingzhi and XiaMen HongXin go up and down completely randomly.
Pair Corralation between Suzhou Mingzhi and XiaMen HongXin
Assuming the 90 days trading horizon Suzhou Mingzhi Technology is expected to generate 0.39 times more return on investment than XiaMen HongXin. However, Suzhou Mingzhi Technology is 2.58 times less risky than XiaMen HongXin. It trades about 0.33 of its potential returns per unit of risk. XiaMen HongXin Electron tech is currently generating about 0.06 per unit of risk. If you would invest 1,592 in Suzhou Mingzhi Technology on November 4, 2024 and sell it today you would earn a total of 207.00 from holding Suzhou Mingzhi Technology or generate 13.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Suzhou Mingzhi Technology vs. XiaMen HongXin Electron tech
Performance |
| Timeline |
| Suzhou Mingzhi Technology |
| XiaMen HongXin Electron |
Suzhou Mingzhi and XiaMen HongXin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Mingzhi and XiaMen HongXin
The main advantage of trading using opposite Suzhou Mingzhi and XiaMen HongXin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Mingzhi position performs unexpectedly, XiaMen HongXin 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 XiaMen HongXin will offset losses from the drop in XiaMen HongXin's long position.| Suzhou Mingzhi vs. Montage Technology Co | Suzhou Mingzhi vs. Changzhou Evergreen Technology | Suzhou Mingzhi vs. Yunnan Jianzhijia Health Chain | Suzhou Mingzhi vs. Humanwell Healthcare Group |
| XiaMen HongXin vs. Allwin Telecommunication Co | XiaMen HongXin vs. Bank of Communications | XiaMen HongXin vs. State Grid InformationCommunication | XiaMen HongXin vs. Bomesc Offshore Engineering |
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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