Correlation Between Songz Automobile and Bank of Jiangsu Co Ltd
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By analyzing existing cross correlation between Songz Automobile Air and Bank of Jiangsu, you can compare the effects of market volatilities on Songz Automobile and Bank of Jiangsu Co Ltd 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 Songz Automobile with a short position of Bank of Jiangsu Co Ltd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Songz Automobile and Bank of Jiangsu Co Ltd.
Diversification Opportunities for Songz Automobile and Bank of Jiangsu Co Ltd
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Songz and Bank is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Songz Automobile Air and Bank of Jiangsu in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of Jiangsu Co Ltd and Songz Automobile 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 Songz Automobile Air are associated (or correlated) with Bank of Jiangsu Co Ltd. 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 Jiangsu Co Ltd has no effect on the direction of Songz Automobile i.e., Songz Automobile and Bank of Jiangsu Co Ltd go up and down completely randomly.
Pair Corralation between Songz Automobile and Bank of Jiangsu Co Ltd
Assuming the 90 days trading horizon Songz Automobile Air is expected to generate 1.26 times more return on investment than Bank of Jiangsu Co Ltd. However, Songz Automobile is 1.26 times more volatile than Bank of Jiangsu. It trades about 0.17 of its potential returns per unit of risk. Bank of Jiangsu is currently generating about 0.13 per unit of risk. If you would invest 544.00 in Songz Automobile Air on September 2, 2024 and sell it today you would earn a total of 145.00 from holding Songz Automobile Air or generate 26.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Songz Automobile Air vs. Bank of Jiangsu
Performance |
| Timeline |
| Songz Automobile Air |
| Bank of Jiangsu Co Ltd |
Songz Automobile and Bank of Jiangsu Co Ltd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Songz Automobile and Bank of Jiangsu Co Ltd
The main advantage of trading using opposite Songz Automobile and Bank of Jiangsu Co Ltd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Songz Automobile position performs unexpectedly, Bank of Jiangsu Co Ltd 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 Jiangsu Co Ltd will offset losses from the drop in Bank of Jiangsu Co Ltd's long position.| Songz Automobile vs. BYD Co Ltd | Songz Automobile vs. China Mobile Limited | Songz Automobile vs. Agricultural Bank of | Songz Automobile vs. Industrial and Commercial |
| Bank of Jiangsu Co Ltd vs. Shanghai Yanpu Metal | Bank of Jiangsu Co Ltd vs. Shengda Mining Co | Bank of Jiangsu Co Ltd vs. Chengtun Mining Group | Bank of Jiangsu Co Ltd vs. Will Semiconductor 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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