Correlation Between Soochow Securities and Dow Jones
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By analyzing existing cross correlation between Soochow Securities Co and Dow Jones Industrial, you can compare the effects of market volatilities on Soochow Securities and Dow Jones 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 Soochow Securities with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Soochow Securities and Dow Jones.
Diversification Opportunities for Soochow Securities and Dow Jones
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Soochow and Dow is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Soochow Securities Co and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial and Soochow Securities 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 Soochow Securities Co are associated (or correlated) with Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Soochow Securities i.e., Soochow Securities and Dow Jones go up and down completely randomly.
Pair Corralation between Soochow Securities and Dow Jones
Assuming the 90 days trading horizon Soochow Securities Co is expected to generate 4.02 times more return on investment than Dow Jones. However, Soochow Securities is 4.02 times more volatile than Dow Jones Industrial. It trades about 0.15 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.04 per unit of risk. If you would invest 619.00 in Soochow Securities Co on September 22, 2024 and sell it today you would earn a total of 189.00 from holding Soochow Securities Co or generate 30.53% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 95.31% |
Values | Daily Returns |
Soochow Securities Co vs. Dow Jones Industrial
Performance |
Timeline |
Soochow Securities and Dow Jones Volatility Contrast
Predicted Return Density |
Returns |
Soochow Securities Co
Pair trading matchups for Soochow Securities
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Soochow Securities and Dow Jones
The main advantage of trading using opposite Soochow Securities and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Soochow Securities position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.Soochow Securities vs. China Petroleum Chemical | ||
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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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