Correlation Between Tongling Nonferrous and Bank of Suzhou
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By analyzing existing cross correlation between Tongling Nonferrous Metals and Bank of Suzhou, you can compare the effects of market volatilities on Tongling Nonferrous 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 Tongling Nonferrous with a short position of Bank of Suzhou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tongling Nonferrous and Bank of Suzhou.
Diversification Opportunities for Tongling Nonferrous and Bank of Suzhou
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Tongling and Bank is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Tongling Nonferrous Metals 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 Tongling Nonferrous 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 Tongling Nonferrous Metals 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 Tongling Nonferrous i.e., Tongling Nonferrous and Bank of Suzhou go up and down completely randomly.
Pair Corralation between Tongling Nonferrous and Bank of Suzhou
Assuming the 90 days trading horizon Tongling Nonferrous Metals is expected to generate 0.77 times more return on investment than Bank of Suzhou. However, Tongling Nonferrous Metals is 1.29 times less risky than Bank of Suzhou. It trades about 0.07 of its potential returns per unit of risk. Bank of Suzhou is currently generating about -0.06 per unit of risk. If you would invest 323.00 in Tongling Nonferrous Metals on November 6, 2024 and sell it today you would earn a total of 4.00 from holding Tongling Nonferrous Metals or generate 1.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tongling Nonferrous Metals vs. Bank of Suzhou
Performance |
| Timeline |
| Tongling Nonferrous |
| Bank of Suzhou |
Tongling Nonferrous and Bank of Suzhou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tongling Nonferrous and Bank of Suzhou
The main advantage of trading using opposite Tongling Nonferrous and Bank of Suzhou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tongling Nonferrous 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.| Tongling Nonferrous vs. Sportsoul Co Ltd | Tongling Nonferrous vs. Shandong Sanyuan Biotechnology | Tongling Nonferrous vs. Chengdu B ray Media | Tongling Nonferrous vs. Liaoning Chengda Biotechnology |
| Bank of Suzhou vs. Postal Savings Bank | Bank of Suzhou vs. Shengda Mining Co | Bank of Suzhou vs. Ningbo Tech Bank Co | Bank of Suzhou vs. Jiangsu Financial Leasing |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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