Correlation Between A Zenith and Suofeiya Home
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By analyzing existing cross correlation between A Zenith Home Furnishings and Suofeiya Home Collection, you can compare the effects of market volatilities on A Zenith and Suofeiya Home 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 A Zenith with a short position of Suofeiya Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of A Zenith and Suofeiya Home.
Diversification Opportunities for A Zenith and Suofeiya Home
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 603389 and Suofeiya is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding A Zenith Home Furnishings and Suofeiya Home Collection in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suofeiya Home Collection and A Zenith 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 A Zenith Home Furnishings are associated (or correlated) with Suofeiya Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suofeiya Home Collection has no effect on the direction of A Zenith i.e., A Zenith and Suofeiya Home go up and down completely randomly.
Pair Corralation between A Zenith and Suofeiya Home
Assuming the 90 days trading horizon A Zenith is expected to generate 1.12 times less return on investment than Suofeiya Home. In addition to that, A Zenith is 1.3 times more volatile than Suofeiya Home Collection. It trades about 0.1 of its total potential returns per unit of risk. Suofeiya Home Collection is currently generating about 0.14 per unit of volatility. If you would invest 1,322 in Suofeiya Home Collection on September 20, 2024 and sell it today you would earn a total of 420.00 from holding Suofeiya Home Collection or generate 31.77% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
A Zenith Home Furnishings vs. Suofeiya Home Collection
Performance |
Timeline |
A Zenith Home |
Suofeiya Home Collection |
A Zenith and Suofeiya Home Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with A Zenith and Suofeiya Home
The main advantage of trading using opposite A Zenith and Suofeiya Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if A Zenith position performs unexpectedly, Suofeiya Home 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 Suofeiya Home will offset losses from the drop in Suofeiya Home's long position.A Zenith vs. King Strong New Material | A Zenith vs. Super Dragon Engineering Plastics | A Zenith vs. Xiandai Investment Co | A Zenith vs. Kangxin New Materials |
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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 CEOs Directory module to screen CEOs from public companies around the world.
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