Correlation Between Bank of Suzhou and CNPC Capital
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By analyzing existing cross correlation between Bank of Suzhou and CNPC Capital Co, you can compare the effects of market volatilities on Bank of Suzhou and CNPC Capital 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 CNPC Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of Suzhou and CNPC Capital.
Diversification Opportunities for Bank of Suzhou and CNPC Capital
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and CNPC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bank of Suzhou and CNPC Capital Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CNPC Capital 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 CNPC Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CNPC Capital has no effect on the direction of Bank of Suzhou i.e., Bank of Suzhou and CNPC Capital go up and down completely randomly.
Pair Corralation between Bank of Suzhou and CNPC Capital
Assuming the 90 days trading horizon Bank of Suzhou is expected to under-perform the CNPC Capital. In addition to that, Bank of Suzhou is 1.08 times more volatile than CNPC Capital Co. It trades about -0.17 of its total potential returns per unit of risk. CNPC Capital Co is currently generating about 0.01 per unit of volatility. If you would invest 662.00 in CNPC Capital Co on November 8, 2024 and sell it today you would earn a total of 1.00 from holding CNPC Capital Co or generate 0.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 94.12% |
| Values | Daily Returns |
Bank of Suzhou vs. CNPC Capital Co
Performance |
| Timeline |
| Bank of Suzhou |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
| CNPC Capital |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bank of Suzhou and CNPC Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of Suzhou and CNPC Capital
The main advantage of trading using opposite Bank of Suzhou and CNPC Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of Suzhou position performs unexpectedly, CNPC Capital 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 CNPC Capital will offset losses from the drop in CNPC Capital's long position.The idea behind Bank of Suzhou and CNPC Capital Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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