Correlation Between Bank of Suzhou and Jinlong Machinery
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By analyzing existing cross correlation between Bank of Suzhou and Jinlong Machinery Electronic, you can compare the effects of market volatilities on Bank of Suzhou and Jinlong Machinery 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 Jinlong Machinery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of Suzhou and Jinlong Machinery.
Diversification Opportunities for Bank of Suzhou and Jinlong Machinery
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bank and Jinlong is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Bank of Suzhou and Jinlong Machinery Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinlong 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 Jinlong Machinery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinlong Machinery has no effect on the direction of Bank of Suzhou i.e., Bank of Suzhou and Jinlong Machinery go up and down completely randomly.
Pair Corralation between Bank of Suzhou and Jinlong Machinery
Assuming the 90 days trading horizon Bank of Suzhou is expected to generate 0.29 times more return on investment than Jinlong Machinery. However, Bank of Suzhou is 3.48 times less risky than Jinlong Machinery. It trades about -0.05 of its potential returns per unit of risk. Jinlong Machinery Electronic is currently generating about -0.25 per unit of risk. If you would invest 798.00 in Bank of Suzhou on October 17, 2024 and sell it today you would lose (10.00) from holding Bank of Suzhou or give up 1.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of Suzhou vs. Jinlong Machinery Electronic
Performance |
| Timeline |
| Bank of Suzhou |
| Jinlong Machinery |
Bank of Suzhou and Jinlong Machinery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of Suzhou and Jinlong Machinery
The main advantage of trading using opposite Bank of Suzhou and Jinlong Machinery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of Suzhou position performs unexpectedly, Jinlong Machinery 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 Jinlong Machinery will offset losses from the drop in Jinlong Machinery's long position.| Bank of Suzhou vs. Zhengzhou Coal Mining | Bank of Suzhou vs. Ye Chiu Metal | Bank of Suzhou vs. Anhui Jinhe Industrial | Bank of Suzhou vs. Pengxin International Mining |
| Jinlong Machinery vs. Western Metal Materials | Jinlong Machinery vs. Caihong Display Devices | Jinlong Machinery vs. Bank of Suzhou | Jinlong Machinery vs. Ningbo Tip Rubber |
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 Channel module to use Commodity Channel Index to analyze current equity momentum.
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