Correlation Between China Express and Bank of Suzhou
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Express Airlines and Bank of Suzhou, you can compare the effects of market volatilities on China Express 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 China Express with a short position of Bank of Suzhou. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Express and Bank of Suzhou.
Diversification Opportunities for China Express and Bank of Suzhou
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and Bank is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding China Express Airlines 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 China Express 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 China Express Airlines 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 China Express i.e., China Express and Bank of Suzhou go up and down completely randomly.
Pair Corralation between China Express and Bank of Suzhou
Assuming the 90 days trading horizon China Express Airlines is expected to under-perform the Bank of Suzhou. In addition to that, China Express is 1.53 times more volatile than Bank of Suzhou. It trades about -0.12 of its total potential returns per unit of risk. Bank of Suzhou is currently generating about 0.33 per unit of volatility. If you would invest 736.00 in Bank of Suzhou on September 13, 2024 and sell it today you would earn a total of 58.00 from holding Bank of Suzhou or generate 7.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Express Airlines vs. Bank of Suzhou
Performance |
| Timeline |
| China Express Airlines |
| Bank of Suzhou |
China Express and Bank of Suzhou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Express and Bank of Suzhou
The main advantage of trading using opposite China Express and Bank of Suzhou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Express 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.| China Express vs. China State Construction | China Express vs. Poly Real Estate | China Express vs. China Vanke Co | China Express vs. China Merchants Shekou |
| Bank of Suzhou vs. Cultural Investment Holdings | Bank of Suzhou vs. Gome Telecom Equipment | 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |