Correlation Between Bank of Suzhou and Shandong Rike
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By analyzing existing cross correlation between Bank of Suzhou and Shandong Rike Chemical, you can compare the effects of market volatilities on Bank of Suzhou and Shandong Rike 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 Shandong Rike. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of Suzhou and Shandong Rike.
Diversification Opportunities for Bank of Suzhou and Shandong Rike
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Bank and Shandong is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Bank of Suzhou and Shandong Rike Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Rike Chemical 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 Shandong Rike. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Rike Chemical has no effect on the direction of Bank of Suzhou i.e., Bank of Suzhou and Shandong Rike go up and down completely randomly.
Pair Corralation between Bank of Suzhou and Shandong Rike
Assuming the 90 days trading horizon Bank of Suzhou is expected to generate 0.29 times more return on investment than Shandong Rike. However, Bank of Suzhou is 3.46 times less risky than Shandong Rike. It trades about 0.04 of its potential returns per unit of risk. Shandong Rike Chemical is currently generating about -0.13 per unit of risk. If you would invest 798.00 in Bank of Suzhou on October 15, 2024 and sell it today you would earn a total of 6.00 from holding Bank of Suzhou or generate 0.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of Suzhou vs. Shandong Rike Chemical
Performance |
| Timeline |
| Bank of Suzhou |
| Shandong Rike Chemical |
Bank of Suzhou and Shandong Rike Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of Suzhou and Shandong Rike
The main advantage of trading using opposite Bank of Suzhou and Shandong Rike positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of Suzhou position performs unexpectedly, Shandong Rike 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 Shandong Rike will offset losses from the drop in Shandong Rike's long position.| Bank of Suzhou vs. Pengxin International Mining | Bank of Suzhou vs. Muyuan Foodstuff Co | Bank of Suzhou vs. Tibet Huayu Mining | Bank of Suzhou vs. Beijing HuaYuanYiTong Thermal |
| Shandong Rike vs. China Everbright Bank | Shandong Rike vs. Lecron Energy Saving | Shandong Rike vs. Panda Financial Holding | Shandong Rike 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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