Correlation Between Xiandai Investment and Bank of Suzhou
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By analyzing existing cross correlation between Xiandai Investment Co and Bank of Suzhou, you can compare the effects of market volatilities on Xiandai Investment 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 Xiandai Investment with a short position of Bank of Suzhou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiandai Investment and Bank of Suzhou.
Diversification Opportunities for Xiandai Investment and Bank of Suzhou
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Xiandai and Bank is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Xiandai Investment Co 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 Xiandai Investment 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 Xiandai Investment Co 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 Xiandai Investment i.e., Xiandai Investment and Bank of Suzhou go up and down completely randomly.
Pair Corralation between Xiandai Investment and Bank of Suzhou
Assuming the 90 days trading horizon Xiandai Investment Co is expected to generate 0.92 times more return on investment than Bank of Suzhou. However, Xiandai Investment Co is 1.08 times less risky than Bank of Suzhou. It trades about -0.04 of its potential returns per unit of risk. Bank of Suzhou is currently generating about -0.38 per unit of risk. If you would invest 422.00 in Xiandai Investment Co on November 28, 2024 and sell it today you would lose (3.00) from holding Xiandai Investment Co or give up 0.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiandai Investment Co vs. Bank of Suzhou
Performance |
| Timeline |
| Xiandai Investment |
| Bank of Suzhou |
Xiandai Investment and Bank of Suzhou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiandai Investment and Bank of Suzhou
The main advantage of trading using opposite Xiandai Investment and Bank of Suzhou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiandai Investment 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.| Xiandai Investment vs. Yinbang Clad Material | Xiandai Investment vs. Wankai New Materials | Xiandai Investment vs. Hua Hong Semiconductor | Xiandai Investment vs. Suzhou Xingye Material |
| Bank of Suzhou vs. HUAQIN TECHNOLOGY LTD | Bank of Suzhou vs. Jiangsu Jinling Sports | Bank of Suzhou vs. Changzhou Evergreen Technology | Bank of Suzhou vs. Hubeiyichang Transportation Group |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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