Correlation Between Bank of Suzhou and Shaanxi Meineng
Specify exactly 2 symbols:
By analyzing existing cross correlation between Bank of Suzhou and Shaanxi Meineng Clean, you can compare the effects of market volatilities on Bank of Suzhou and Shaanxi Meineng 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 Shaanxi Meineng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of Suzhou and Shaanxi Meineng.
Diversification Opportunities for Bank of Suzhou and Shaanxi Meineng
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Bank and Shaanxi is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Bank of Suzhou and Shaanxi Meineng Clean in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shaanxi Meineng Clean 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 Shaanxi Meineng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shaanxi Meineng Clean has no effect on the direction of Bank of Suzhou i.e., Bank of Suzhou and Shaanxi Meineng go up and down completely randomly.
Pair Corralation between Bank of Suzhou and Shaanxi Meineng
Assuming the 90 days trading horizon Bank of Suzhou is expected to generate 0.47 times more return on investment than Shaanxi Meineng. However, Bank of Suzhou is 2.14 times less risky than Shaanxi Meineng. It trades about 0.33 of its potential returns per unit of risk. Shaanxi Meineng Clean is currently generating about -0.07 per unit of risk. If you would invest 736.00 in Bank of Suzhou on September 13, 2024 and sell it today you would earn a total of 58.00 from holding Bank of Suzhou or generate 7.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of Suzhou vs. Shaanxi Meineng Clean
Performance |
| Timeline |
| Bank of Suzhou |
| Shaanxi Meineng Clean |
Bank of Suzhou and Shaanxi Meineng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of Suzhou and Shaanxi Meineng
The main advantage of trading using opposite Bank of Suzhou and Shaanxi Meineng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of Suzhou position performs unexpectedly, Shaanxi Meineng 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 Shaanxi Meineng will offset losses from the drop in Shaanxi Meineng's long position.| Bank of Suzhou vs. Cultural Investment Holdings | Bank of Suzhou vs. Gome Telecom Equipment | Bank of Suzhou vs. Holitech Technology Co | Bank of Suzhou vs. Zotye Automobile Co |
| Shaanxi Meineng vs. Innovative Medical Management | Shaanxi Meineng vs. Cowealth Medical China | Shaanxi Meineng vs. Zhongzhu Medical Holdings | Shaanxi Meineng vs. Touchstone International Medical |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Global Correlations Find global opportunities by holding instruments from different markets |