Correlation Between Bank of Suzhou and Central Plains
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By analyzing existing cross correlation between Bank of Suzhou and Central Plains Environment, you can compare the effects of market volatilities on Bank of Suzhou and Central Plains 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 Central Plains. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of Suzhou and Central Plains.
Diversification Opportunities for Bank of Suzhou and Central Plains
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bank and Central is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Bank of Suzhou and Central Plains Environment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Central Plains Envir 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 Central Plains. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Central Plains Envir has no effect on the direction of Bank of Suzhou i.e., Bank of Suzhou and Central Plains go up and down completely randomly.
Pair Corralation between Bank of Suzhou and Central Plains
Assuming the 90 days trading horizon Bank of Suzhou is expected to generate 5.53 times less return on investment than Central Plains. In addition to that, Bank of Suzhou is 1.35 times more volatile than Central Plains Environment. It trades about 0.02 of its total potential returns per unit of risk. Central Plains Environment is currently generating about 0.16 per unit of volatility. If you would invest 833.00 in Central Plains Environment on November 4, 2024 and sell it today you would earn a total of 26.00 from holding Central Plains Environment or generate 3.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of Suzhou vs. Central Plains Environment
Performance |
| Timeline |
| Bank of Suzhou |
| Central Plains Envir |
Bank of Suzhou and Central Plains Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of Suzhou and Central Plains
The main advantage of trading using opposite Bank of Suzhou and Central Plains positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of Suzhou position performs unexpectedly, Central Plains 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 Central Plains will offset losses from the drop in Central Plains' long position.| Bank of Suzhou vs. Agricultural Bank of | Bank of Suzhou vs. Industrial and Commercial | Bank of Suzhou vs. Bank of China | Bank of Suzhou vs. PetroChina Co Ltd |
| Central Plains vs. Shengda Mining Co | Central Plains vs. North Copper Shanxi | Central Plains vs. Zhejiang Kingland Pipeline | Central Plains vs. CICC Fund Management |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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