Correlation Between Suzhou Weizhixiang and Zhejiang Huatong
Specify exactly 2 symbols:
By analyzing existing cross correlation between Suzhou Weizhixiang Food and Zhejiang Huatong Meat, you can compare the effects of market volatilities on Suzhou Weizhixiang and Zhejiang Huatong 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 Weizhixiang with a short position of Zhejiang Huatong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Weizhixiang and Zhejiang Huatong.
Diversification Opportunities for Suzhou Weizhixiang and Zhejiang Huatong
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Suzhou and Zhejiang is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Weizhixiang Food and Zhejiang Huatong Meat in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Huatong Meat and Suzhou Weizhixiang 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 Weizhixiang Food are associated (or correlated) with Zhejiang Huatong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Huatong Meat has no effect on the direction of Suzhou Weizhixiang i.e., Suzhou Weizhixiang and Zhejiang Huatong go up and down completely randomly.
Pair Corralation between Suzhou Weizhixiang and Zhejiang Huatong
Assuming the 90 days trading horizon Suzhou Weizhixiang Food is expected to generate 1.53 times more return on investment than Zhejiang Huatong. However, Suzhou Weizhixiang is 1.53 times more volatile than Zhejiang Huatong Meat. It trades about 0.19 of its potential returns per unit of risk. Zhejiang Huatong Meat is currently generating about 0.05 per unit of risk. If you would invest 2,254 in Suzhou Weizhixiang Food on September 26, 2024 and sell it today you would earn a total of 440.00 from holding Suzhou Weizhixiang Food or generate 19.52% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Suzhou Weizhixiang Food vs. Zhejiang Huatong Meat
Performance |
Timeline |
Suzhou Weizhixiang Food |
Zhejiang Huatong Meat |
Suzhou Weizhixiang and Zhejiang Huatong Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Suzhou Weizhixiang and Zhejiang Huatong
The main advantage of trading using opposite Suzhou Weizhixiang and Zhejiang Huatong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Weizhixiang position performs unexpectedly, Zhejiang Huatong 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 Zhejiang Huatong will offset losses from the drop in Zhejiang Huatong's long position.Suzhou Weizhixiang vs. Ming Yang Smart | Suzhou Weizhixiang vs. 159681 | Suzhou Weizhixiang vs. 159005 | Suzhou Weizhixiang vs. Loctek Ergonomic Technology |
Zhejiang Huatong vs. Ming Yang Smart | Zhejiang Huatong vs. 159681 | Zhejiang Huatong vs. 159005 | Zhejiang Huatong vs. Loctek Ergonomic Technology |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |