Correlation Between Suzhou Xingye and Inner Mongolia
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By analyzing existing cross correlation between Suzhou Xingye Material and Inner Mongolia BaoTou, you can compare the effects of market volatilities on Suzhou Xingye and Inner Mongolia 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 Xingye with a short position of Inner Mongolia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Xingye and Inner Mongolia.
Diversification Opportunities for Suzhou Xingye and Inner Mongolia
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Suzhou and Inner is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Xingye Material and Inner Mongolia BaoTou in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inner Mongolia BaoTou and Suzhou Xingye 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 Xingye Material are associated (or correlated) with Inner Mongolia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inner Mongolia BaoTou has no effect on the direction of Suzhou Xingye i.e., Suzhou Xingye and Inner Mongolia go up and down completely randomly.
Pair Corralation between Suzhou Xingye and Inner Mongolia
Assuming the 90 days trading horizon Suzhou Xingye Material is expected to generate 1.12 times more return on investment than Inner Mongolia. However, Suzhou Xingye is 1.12 times more volatile than Inner Mongolia BaoTou. It trades about 0.01 of its potential returns per unit of risk. Inner Mongolia BaoTou is currently generating about -0.05 per unit of risk. If you would invest 925.00 in Suzhou Xingye Material on September 24, 2024 and sell it today you would earn a total of 0.00 from holding Suzhou Xingye Material or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Suzhou Xingye Material vs. Inner Mongolia BaoTou
Performance |
Timeline |
Suzhou Xingye Material |
Inner Mongolia BaoTou |
Suzhou Xingye and Inner Mongolia Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Suzhou Xingye and Inner Mongolia
The main advantage of trading using opposite Suzhou Xingye and Inner Mongolia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Xingye position performs unexpectedly, Inner Mongolia 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 Inner Mongolia will offset losses from the drop in Inner Mongolia's long position.Suzhou Xingye vs. Zijin Mining Group | Suzhou Xingye vs. Wanhua Chemical Group | Suzhou Xingye vs. Baoshan Iron Steel | Suzhou Xingye vs. Shandong Gold Mining |
Inner Mongolia vs. Suzhou Xingye Material | Inner Mongolia vs. Gansu Huangtai Wine marketing | Inner Mongolia vs. Bank of Suzhou | Inner Mongolia vs. Peoples Insurance of |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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