Correlation Between Bank of Suzhou and Financial Street
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By analyzing existing cross correlation between Bank of Suzhou and Financial Street Holdings, you can compare the effects of market volatilities on Bank of Suzhou and Financial Street 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 Bank of Suzhou with a short position of Financial Street. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of Suzhou and Financial Street.
Diversification Opportunities for Bank of Suzhou and Financial Street
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and Financial is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Bank of Suzhou and Financial Street Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Financial Street Holdings and Bank of Suzhou 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 Bank of Suzhou are associated (or correlated) with Financial Street. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Financial Street Holdings has no effect on the direction of Bank of Suzhou i.e., Bank of Suzhou and Financial Street go up and down completely randomly.
Pair Corralation between Bank of Suzhou and Financial Street
Assuming the 90 days trading horizon Bank of Suzhou is expected to generate 0.54 times more return on investment than Financial Street. However, Bank of Suzhou is 1.85 times less risky than Financial Street. It trades about 0.03 of its potential returns per unit of risk. Financial Street Holdings is currently generating about -0.03 per unit of risk. If you would invest 684.00 in Bank of Suzhou on October 16, 2024 and sell it today you would earn a total of 106.00 from holding Bank of Suzhou or generate 15.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of Suzhou vs. Financial Street Holdings
Performance |
| Timeline |
| Bank of Suzhou |
| Financial Street Holdings |
Bank of Suzhou and Financial Street Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of Suzhou and Financial Street
The main advantage of trading using opposite Bank of Suzhou and Financial Street positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of Suzhou position performs unexpectedly, Financial Street 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 Financial Street will offset losses from the drop in Financial Street's long position.| Bank of Suzhou vs. Threes Company Media | Bank of Suzhou vs. Anhui Xinhua Media | Bank of Suzhou vs. Shuhua Sports Co | Bank of Suzhou vs. HanS Laser Tech |
| Financial Street vs. Zoje Resources Investment | Financial Street vs. Postal Savings Bank | Financial Street vs. Zhongrun Resources Investment | Financial Street vs. Hunan Investment 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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