Correlation Between Bank of Suzhou and Xiandai Investment
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By analyzing existing cross correlation between Bank of Suzhou and Xiandai Investment Co, you can compare the effects of market volatilities on Bank of Suzhou and Xiandai Investment 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 Xiandai Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of Suzhou and Xiandai Investment.
Diversification Opportunities for Bank of Suzhou and Xiandai Investment
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Bank and Xiandai is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Bank of Suzhou and Xiandai Investment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiandai Investment 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 Xiandai Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiandai Investment has no effect on the direction of Bank of Suzhou i.e., Bank of Suzhou and Xiandai Investment go up and down completely randomly.
Pair Corralation between Bank of Suzhou and Xiandai Investment
Assuming the 90 days trading horizon Bank of Suzhou is expected to under-perform the Xiandai Investment. In addition to that, Bank of Suzhou is 1.08 times more volatile than Xiandai Investment Co. It trades about -0.38 of its total potential returns per unit of risk. Xiandai Investment Co is currently generating about -0.04 per unit of volatility. If you would invest 422.00 in Xiandai Investment Co on November 28, 2024 and sell it today you would lose (3.00) from holding Xiandai Investment Co or give up 0.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of Suzhou vs. Xiandai Investment Co
Performance |
| Timeline |
| Bank of Suzhou |
| Xiandai Investment |
Bank of Suzhou and Xiandai Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of Suzhou and Xiandai Investment
The main advantage of trading using opposite Bank of Suzhou and Xiandai Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of Suzhou position performs unexpectedly, Xiandai Investment 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 Xiandai Investment will offset losses from the drop in Xiandai Investment'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 |
| Xiandai Investment vs. Yinbang Clad Material | Xiandai Investment vs. Wankai New Materials | Xiandai Investment vs. Hua Hong Semiconductor | Xiandai Investment vs. Suzhou Xingye Material |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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