Correlation Between Bank of Suzhou and Zhejiang Yinlun
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By analyzing existing cross correlation between Bank of Suzhou and Zhejiang Yinlun Machinery, you can compare the effects of market volatilities on Bank of Suzhou and Zhejiang Yinlun 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 Zhejiang Yinlun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of Suzhou and Zhejiang Yinlun.
Diversification Opportunities for Bank of Suzhou and Zhejiang Yinlun
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and Zhejiang is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Bank of Suzhou and Zhejiang Yinlun Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Yinlun Machinery 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 Zhejiang Yinlun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Yinlun Machinery has no effect on the direction of Bank of Suzhou i.e., Bank of Suzhou and Zhejiang Yinlun go up and down completely randomly.
Pair Corralation between Bank of Suzhou and Zhejiang Yinlun
Assuming the 90 days trading horizon Bank of Suzhou is expected to generate 8.01 times less return on investment than Zhejiang Yinlun. But when comparing it to its historical volatility, Bank of Suzhou is 2.35 times less risky than Zhejiang Yinlun. It trades about 0.06 of its potential returns per unit of risk. Zhejiang Yinlun Machinery is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 1,776 in Zhejiang Yinlun Machinery on October 12, 2024 and sell it today you would earn a total of 194.00 from holding Zhejiang Yinlun Machinery or generate 10.92% 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. Zhejiang Yinlun Machinery
Performance |
| Timeline |
| Bank of Suzhou |
| Zhejiang Yinlun Machinery |
Bank of Suzhou and Zhejiang Yinlun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of Suzhou and Zhejiang Yinlun
The main advantage of trading using opposite Bank of Suzhou and Zhejiang Yinlun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of Suzhou position performs unexpectedly, Zhejiang Yinlun 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 Zhejiang Yinlun will offset losses from the drop in Zhejiang Yinlun's long position.| Bank of Suzhou vs. HeNan Splendor Science | Bank of Suzhou vs. Weichai Heavy Machinery | Bank of Suzhou vs. Peoples Insurance of | Bank of Suzhou vs. Huasi Agricultural Development |
| Zhejiang Yinlun vs. Easyhome New Retail | Zhejiang Yinlun vs. Zhengping RoadBridge Constr | Zhejiang Yinlun vs. Shanghai Broadband Technology | Zhejiang Yinlun vs. Bank of Suzhou |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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