Correlation Between Bank of Suzhou and Henan Shuanghui
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By analyzing existing cross correlation between Bank of Suzhou and Henan Shuanghui Investment, you can compare the effects of market volatilities on Bank of Suzhou and Henan Shuanghui 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 Henan Shuanghui. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of Suzhou and Henan Shuanghui.
Diversification Opportunities for Bank of Suzhou and Henan Shuanghui
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Bank and Henan is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Bank of Suzhou and Henan Shuanghui Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Henan Shuanghui Inve 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 Henan Shuanghui. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Henan Shuanghui Inve has no effect on the direction of Bank of Suzhou i.e., Bank of Suzhou and Henan Shuanghui go up and down completely randomly.
Pair Corralation between Bank of Suzhou and Henan Shuanghui
Assuming the 90 days trading horizon Bank of Suzhou is expected to under-perform the Henan Shuanghui. But the stock apears to be less risky and, when comparing its historical volatility, Bank of Suzhou is 1.18 times less risky than Henan Shuanghui. The stock trades about -0.38 of its potential returns per unit of risk. The Henan Shuanghui Investment is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 2,636 in Henan Shuanghui Investment on November 28, 2024 and sell it today you would earn a total of 0.00 from holding Henan Shuanghui Investment or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of Suzhou vs. Henan Shuanghui Investment
Performance |
| Timeline |
| Bank of Suzhou |
| Henan Shuanghui Inve |
Bank of Suzhou and Henan Shuanghui Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of Suzhou and Henan Shuanghui
The main advantage of trading using opposite Bank of Suzhou and Henan Shuanghui positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of Suzhou position performs unexpectedly, Henan Shuanghui 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 Henan Shuanghui will offset losses from the drop in Henan Shuanghui's long position.| Bank of Suzhou vs. HUAQIN TECHNOLOGY LTD | Bank of Suzhou vs. Jiangsu Jinling Sports | Bank of Suzhou vs. Changzhou Evergreen Technology | Bank of Suzhou vs. Hubeiyichang Transportation Group |
| Henan Shuanghui vs. Jiangsu Yueda Investment | Henan Shuanghui vs. Jiangsu Broadcasting Cable | Henan Shuanghui vs. Harson Trading China | Henan Shuanghui vs. Chengdu Xingrong 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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