Correlation Between Financial Street and Bank of Suzhou
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By analyzing existing cross correlation between Financial Street Holdings and Bank of Suzhou, you can compare the effects of market volatilities on Financial Street and Bank of Suzhou 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 Financial Street with a short position of Bank of Suzhou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Financial Street and Bank of Suzhou.
Diversification Opportunities for Financial Street and Bank of Suzhou
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Financial and Bank is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Financial Street Holdings and Bank of Suzhou in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of Suzhou and Financial Street 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 Financial Street Holdings are associated (or correlated) with Bank of Suzhou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of Suzhou has no effect on the direction of Financial Street i.e., Financial Street and Bank of Suzhou go up and down completely randomly.
Pair Corralation between Financial Street and Bank of Suzhou
Assuming the 90 days trading horizon Financial Street Holdings is expected to under-perform the Bank of Suzhou. In addition to that, Financial Street is 1.85 times more volatile than Bank of Suzhou. It trades about -0.03 of its total potential returns per unit of risk. Bank of Suzhou is currently generating about 0.03 per unit of volatility. If you would invest 684.00 in Bank of Suzhou on October 16, 2024 and sell it today you would earn a total of 106.00 from holding Bank of Suzhou or generate 15.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Financial Street Holdings vs. Bank of Suzhou
Performance |
| Timeline |
| Financial Street Holdings |
| Bank of Suzhou |
Financial Street and Bank of Suzhou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Financial Street and Bank of Suzhou
The main advantage of trading using opposite Financial Street and Bank of Suzhou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Financial Street position performs unexpectedly, Bank of Suzhou 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 Bank of Suzhou will offset losses from the drop in Bank of Suzhou's long position.| Financial Street vs. Zoje Resources Investment | Financial Street vs. Postal Savings Bank | Financial Street vs. Zhongrun Resources Investment | Financial Street vs. Hunan Investment Group |
| Bank of Suzhou vs. Threes Company Media | Bank of Suzhou vs. Anhui Xinhua Media | Bank of Suzhou vs. Shuhua Sports Co | Bank of Suzhou vs. HanS Laser Tech |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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