Correlation Between Shenzhen RoadRover and Suzhou Dongshan
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By analyzing existing cross correlation between Shenzhen RoadRover Technology and Suzhou Dongshan Precision, you can compare the effects of market volatilities on Shenzhen RoadRover and Suzhou Dongshan 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 Shenzhen RoadRover with a short position of Suzhou Dongshan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen RoadRover and Suzhou Dongshan.
Diversification Opportunities for Shenzhen RoadRover and Suzhou Dongshan
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and Suzhou is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen RoadRover Technology and Suzhou Dongshan Precision in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Dongshan Precision and Shenzhen RoadRover 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 Shenzhen RoadRover Technology are associated (or correlated) with Suzhou Dongshan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou Dongshan Precision has no effect on the direction of Shenzhen RoadRover i.e., Shenzhen RoadRover and Suzhou Dongshan go up and down completely randomly.
Pair Corralation between Shenzhen RoadRover and Suzhou Dongshan
Assuming the 90 days trading horizon Shenzhen RoadRover is expected to generate 1.34 times less return on investment than Suzhou Dongshan. In addition to that, Shenzhen RoadRover is 1.02 times more volatile than Suzhou Dongshan Precision. It trades about 0.02 of its total potential returns per unit of risk. Suzhou Dongshan Precision is currently generating about 0.02 per unit of volatility. If you would invest 2,423 in Suzhou Dongshan Precision on September 20, 2024 and sell it today you would earn a total of 333.00 from holding Suzhou Dongshan Precision or generate 13.74% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 99.79% |
Values | Daily Returns |
Shenzhen RoadRover Technology vs. Suzhou Dongshan Precision
Performance |
Timeline |
Shenzhen RoadRover |
Suzhou Dongshan Precision |
Shenzhen RoadRover and Suzhou Dongshan Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shenzhen RoadRover and Suzhou Dongshan
The main advantage of trading using opposite Shenzhen RoadRover and Suzhou Dongshan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen RoadRover position performs unexpectedly, Suzhou Dongshan 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 Suzhou Dongshan will offset losses from the drop in Suzhou Dongshan's long position.Shenzhen RoadRover vs. Sinomach Automobile Co | Shenzhen RoadRover vs. Songz Automobile Air | Shenzhen RoadRover vs. Xiamen Bank Co | Shenzhen RoadRover vs. Hua Xia Bank |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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