Correlation Between Suzhou Weizhixiang and V V
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By analyzing existing cross correlation between Suzhou Weizhixiang Food and V V Food, you can compare the effects of market volatilities on Suzhou Weizhixiang and V V 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 V V. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Weizhixiang and V V.
Diversification Opportunities for Suzhou Weizhixiang and V V
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Suzhou and 600300 is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Weizhixiang Food and V V Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on V V Food 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 V V. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of V V Food has no effect on the direction of Suzhou Weizhixiang i.e., Suzhou Weizhixiang and V V go up and down completely randomly.
Pair Corralation between Suzhou Weizhixiang and V V
Assuming the 90 days trading horizon Suzhou Weizhixiang Food is expected to generate 1.42 times more return on investment than V V. However, Suzhou Weizhixiang is 1.42 times more volatile than V V Food. It trades about 0.23 of its potential returns per unit of risk. V V Food is currently generating about 0.23 per unit of risk. If you would invest 1,781 in Suzhou Weizhixiang Food on September 4, 2024 and sell it today you would earn a total of 969.00 from holding Suzhou Weizhixiang Food or generate 54.41% 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. V V Food
Performance |
Timeline |
Suzhou Weizhixiang Food |
V V Food |
Suzhou Weizhixiang and V V Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Suzhou Weizhixiang and V V
The main advantage of trading using opposite Suzhou Weizhixiang and V V positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Weizhixiang position performs unexpectedly, V V 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 V V will offset losses from the drop in V V's long position.Suzhou Weizhixiang vs. Poly Real Estate | Suzhou Weizhixiang vs. China Vanke Co | Suzhou Weizhixiang vs. China Merchants Shekou | Suzhou Weizhixiang vs. Huafa Industrial Co |
V V vs. Vanfund Urban Investment | V V vs. Jiujiang Shanshui Technology | V V vs. Hunan Investment Group | V V vs. Kunwu Jiuding Investment |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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