Correlation Between Bank of Suzhou and Foryou Corp
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By analyzing existing cross correlation between Bank of Suzhou and Foryou Corp, you can compare the effects of market volatilities on Bank of Suzhou and Foryou Corp 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 Foryou Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of Suzhou and Foryou Corp.
Diversification Opportunities for Bank of Suzhou and Foryou Corp
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bank and Foryou is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Bank of Suzhou and Foryou Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Foryou Corp 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 Foryou Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Foryou Corp has no effect on the direction of Bank of Suzhou i.e., Bank of Suzhou and Foryou Corp go up and down completely randomly.
Pair Corralation between Bank of Suzhou and Foryou Corp
Assuming the 90 days trading horizon Bank of Suzhou is expected to generate 0.49 times more return on investment than Foryou Corp. However, Bank of Suzhou is 2.05 times less risky than Foryou Corp. It trades about 0.04 of its potential returns per unit of risk. Foryou Corp is currently generating about 0.01 per unit of risk. If you would invest 651.00 in Bank of Suzhou on September 12, 2024 and sell it today you would earn a total of 149.00 from holding Bank of Suzhou or generate 22.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Bank of Suzhou vs. Foryou Corp
Performance |
| Timeline |
| Bank of Suzhou |
| Foryou Corp |
Bank of Suzhou and Foryou Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of Suzhou and Foryou Corp
The main advantage of trading using opposite Bank of Suzhou and Foryou Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of Suzhou position performs unexpectedly, Foryou Corp 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 Foryou Corp will offset losses from the drop in Foryou Corp's long position.| Bank of Suzhou vs. China Petroleum Chemical | Bank of Suzhou vs. PetroChina Co Ltd | Bank of Suzhou vs. China Mobile Limited | Bank of Suzhou vs. Industrial and Commercial |
| Foryou Corp vs. Zhongzhu Medical Holdings | Foryou Corp vs. Guangzhou Boji Medical | Foryou Corp vs. Hua Xia Bank | Foryou Corp 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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