Correlation Between Bank of Suzhou and HeNan Splendor
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By analyzing existing cross correlation between Bank of Suzhou and HeNan Splendor Science, you can compare the effects of market volatilities on Bank of Suzhou and HeNan Splendor 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 Splendor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of Suzhou and HeNan Splendor.
Diversification Opportunities for Bank of Suzhou and HeNan Splendor
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bank and HeNan is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Bank of Suzhou and HeNan Splendor Science in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HeNan Splendor Science 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 Splendor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HeNan Splendor Science has no effect on the direction of Bank of Suzhou i.e., Bank of Suzhou and HeNan Splendor go up and down completely randomly.
Pair Corralation between Bank of Suzhou and HeNan Splendor
Assuming the 90 days trading horizon Bank of Suzhou is expected to generate 30.29 times less return on investment than HeNan Splendor. But when comparing it to its historical volatility, Bank of Suzhou is 2.07 times less risky than HeNan Splendor. It trades about 0.02 of its potential returns per unit of risk. HeNan Splendor Science is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 888.00 in HeNan Splendor Science on November 4, 2024 and sell it today you would earn a total of 160.00 from holding HeNan Splendor Science or generate 18.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of Suzhou vs. HeNan Splendor Science
Performance |
| Timeline |
| Bank of Suzhou |
| HeNan Splendor Science |
Bank of Suzhou and HeNan Splendor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of Suzhou and HeNan Splendor
The main advantage of trading using opposite Bank of Suzhou and HeNan Splendor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of Suzhou position performs unexpectedly, HeNan Splendor 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 Splendor will offset losses from the drop in HeNan Splendor's long position.| Bank of Suzhou vs. Agricultural Bank of | Bank of Suzhou vs. Industrial and Commercial | Bank of Suzhou vs. Bank of China | Bank of Suzhou vs. PetroChina Co Ltd |
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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