Correlation Between Suzhou UIGreen and Shanghai Metersbonwe
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By analyzing existing cross correlation between Suzhou UIGreen Micro and Shanghai Metersbonwe FashionAccessories, you can compare the effects of market volatilities on Suzhou UIGreen and Shanghai Metersbonwe 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 UIGreen with a short position of Shanghai Metersbonwe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou UIGreen and Shanghai Metersbonwe.
Diversification Opportunities for Suzhou UIGreen and Shanghai Metersbonwe
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Suzhou and Shanghai is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou UIGreen Micro and Shanghai Metersbonwe FashionAc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Metersbonwe and Suzhou UIGreen 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 UIGreen Micro are associated (or correlated) with Shanghai Metersbonwe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Metersbonwe has no effect on the direction of Suzhou UIGreen i.e., Suzhou UIGreen and Shanghai Metersbonwe go up and down completely randomly.
Pair Corralation between Suzhou UIGreen and Shanghai Metersbonwe
Assuming the 90 days trading horizon Suzhou UIGreen Micro is expected to under-perform the Shanghai Metersbonwe. But the stock apears to be less risky and, when comparing its historical volatility, Suzhou UIGreen Micro is 1.37 times less risky than Shanghai Metersbonwe. The stock trades about -0.08 of its potential returns per unit of risk. The Shanghai Metersbonwe FashionAccessories is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 186.00 in Shanghai Metersbonwe FashionAccessories on September 5, 2024 and sell it today you would earn a total of 58.00 from holding Shanghai Metersbonwe FashionAccessories or generate 31.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Suzhou UIGreen Micro vs. Shanghai Metersbonwe FashionAc
Performance |
| Timeline |
| Suzhou UIGreen Micro |
| Shanghai Metersbonwe |
Suzhou UIGreen and Shanghai Metersbonwe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou UIGreen and Shanghai Metersbonwe
The main advantage of trading using opposite Suzhou UIGreen and Shanghai Metersbonwe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou UIGreen position performs unexpectedly, Shanghai Metersbonwe 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 Shanghai Metersbonwe will offset losses from the drop in Shanghai Metersbonwe's long position.| Suzhou UIGreen vs. Guangdong Jinming Machinery | Suzhou UIGreen vs. Jiangxi Selon Industrial | Suzhou UIGreen vs. Lonkey Industrial Co | Suzhou UIGreen vs. Huasi Agricultural Development |
| Shanghai Metersbonwe vs. Shaanxi Beiyuan Chemical | Shanghai Metersbonwe vs. Yangmei Chemical Co | Shanghai Metersbonwe vs. Xiangyu Medical Co | Shanghai Metersbonwe vs. Guangzhou Jointas Chemical |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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