Correlation Between Henan Shuanghui and Bank of Suzhou
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By analyzing existing cross correlation between Henan Shuanghui Investment and Bank of Suzhou, you can compare the effects of market volatilities on Henan Shuanghui 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 Henan Shuanghui with a short position of Bank of Suzhou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Henan Shuanghui and Bank of Suzhou.
Diversification Opportunities for Henan Shuanghui and Bank of Suzhou
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Henan and Bank is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Henan Shuanghui Investment 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 Henan Shuanghui 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 Henan Shuanghui Investment 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 Henan Shuanghui i.e., Henan Shuanghui and Bank of Suzhou go up and down completely randomly.
Pair Corralation between Henan Shuanghui and Bank of Suzhou
Assuming the 90 days trading horizon Henan Shuanghui Investment is expected to under-perform the Bank of Suzhou. But the stock apears to be less risky and, when comparing its historical volatility, Henan Shuanghui Investment is 1.14 times less risky than Bank of Suzhou. The stock trades about -0.06 of its potential returns per unit of risk. The Bank of Suzhou is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 744.00 in Bank of Suzhou on September 1, 2024 and sell it today you would earn a total of 48.00 from holding Bank of Suzhou or generate 6.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Henan Shuanghui Investment vs. Bank of Suzhou
Performance |
| Timeline |
| Henan Shuanghui Inve |
| Bank of Suzhou |
Henan Shuanghui and Bank of Suzhou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Henan Shuanghui and Bank of Suzhou
The main advantage of trading using opposite Henan Shuanghui and Bank of Suzhou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Henan Shuanghui 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.| Henan Shuanghui vs. Dymatic Chemicals | Henan Shuanghui vs. Do Fluoride Chemicals Co | Henan Shuanghui vs. Hengdian Entertainment Co | Henan Shuanghui vs. Fujian Anjoy Foods |
| Bank of Suzhou vs. Cultural Investment Holdings | Bank of Suzhou vs. Bus Online Co | Bank of Suzhou vs. Holitech Technology Co | Bank of Suzhou vs. Zotye Automobile Co |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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