Correlation Between Bank of Suzhou and Shenzhen Kexin
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By analyzing existing cross correlation between Bank of Suzhou and Shenzhen Kexin Communication, you can compare the effects of market volatilities on Bank of Suzhou and Shenzhen Kexin 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 Shenzhen Kexin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of Suzhou and Shenzhen Kexin.
Diversification Opportunities for Bank of Suzhou and Shenzhen Kexin
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and Shenzhen is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Bank of Suzhou and Shenzhen Kexin Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Kexin Commu 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 Shenzhen Kexin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Kexin Commu has no effect on the direction of Bank of Suzhou i.e., Bank of Suzhou and Shenzhen Kexin go up and down completely randomly.
Pair Corralation between Bank of Suzhou and Shenzhen Kexin
Assuming the 90 days trading horizon Bank of Suzhou is expected to under-perform the Shenzhen Kexin. But the stock apears to be less risky and, when comparing its historical volatility, Bank of Suzhou is 2.36 times less risky than Shenzhen Kexin. The stock trades about -0.1 of its potential returns per unit of risk. The Shenzhen Kexin Communication is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 1,247 in Shenzhen Kexin Communication on October 30, 2024 and sell it today you would lose (42.00) from holding Shenzhen Kexin Communication or give up 3.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of Suzhou vs. Shenzhen Kexin Communication
Performance |
| Timeline |
| Bank of Suzhou |
| Shenzhen Kexin Commu |
Bank of Suzhou and Shenzhen Kexin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of Suzhou and Shenzhen Kexin
The main advantage of trading using opposite Bank of Suzhou and Shenzhen Kexin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of Suzhou position performs unexpectedly, Shenzhen Kexin 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 Shenzhen Kexin will offset losses from the drop in Shenzhen Kexin's long position.| Bank of Suzhou vs. Hengli Petrochemical Co | Bank of Suzhou vs. Miracll Chemicals Co | Bank of Suzhou vs. Anji Foodstuff Co | Bank of Suzhou vs. Shenzhen Noposion Agrochemicals |
| Shenzhen Kexin vs. Bus Online Co | Shenzhen Kexin vs. Holitech Technology Co | Shenzhen Kexin vs. Gome Telecom Equipment | Shenzhen Kexin vs. Cultural Investment Holdings |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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