Correlation Between Suzhou Mingzhi and Hunan Tyen
Specify exactly 2 symbols:
By analyzing existing cross correlation between Suzhou Mingzhi Technology and Hunan Tyen Machinery, you can compare the effects of market volatilities on Suzhou Mingzhi and Hunan Tyen 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 Hunan Tyen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Mingzhi and Hunan Tyen.
Diversification Opportunities for Suzhou Mingzhi and Hunan Tyen
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Suzhou and Hunan is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Mingzhi Technology and Hunan Tyen Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunan Tyen Machinery 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 Hunan Tyen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hunan Tyen Machinery has no effect on the direction of Suzhou Mingzhi i.e., Suzhou Mingzhi and Hunan Tyen go up and down completely randomly.
Pair Corralation between Suzhou Mingzhi and Hunan Tyen
Assuming the 90 days trading horizon Suzhou Mingzhi Technology is expected to under-perform the Hunan Tyen. But the stock apears to be less risky and, when comparing its historical volatility, Suzhou Mingzhi Technology is 1.81 times less risky than Hunan Tyen. The stock trades about -0.32 of its potential returns per unit of risk. The Hunan Tyen Machinery is currently generating about -0.1 of returns per unit of risk over similar time horizon. If you would invest 574.00 in Hunan Tyen Machinery on October 14, 2024 and sell it today you would lose (53.00) from holding Hunan Tyen Machinery or give up 9.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Suzhou Mingzhi Technology vs. Hunan Tyen Machinery
Performance |
| Timeline |
| Suzhou Mingzhi Technology |
| Hunan Tyen Machinery |
Suzhou Mingzhi and Hunan Tyen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Mingzhi and Hunan Tyen
The main advantage of trading using opposite Suzhou Mingzhi and Hunan Tyen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Mingzhi position performs unexpectedly, Hunan Tyen 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 Hunan Tyen will offset losses from the drop in Hunan Tyen's long position.| Suzhou Mingzhi vs. Great Sun Foods Co | Suzhou Mingzhi vs. Anji Foodstuff Co | Suzhou Mingzhi vs. Kingsignal Technology Co | Suzhou Mingzhi vs. Zhengzhou Qianweiyangchu Food |
| Hunan Tyen vs. Guangxi Wuzhou Communications | Hunan Tyen vs. Quectel Wireless Solutions | Hunan Tyen vs. Nanjing Putian Telecommunications | Hunan Tyen vs. Suzhou Mingzhi Technology |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |