Correlation Between Bank of Suzhou and Xiamen CD
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By analyzing existing cross correlation between Bank of Suzhou and Xiamen CD, you can compare the effects of market volatilities on Bank of Suzhou and Xiamen CD 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 Xiamen CD. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of Suzhou and Xiamen CD.
Diversification Opportunities for Bank of Suzhou and Xiamen CD
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bank and Xiamen is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Bank of Suzhou and Xiamen CD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen CD 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 Xiamen CD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen CD has no effect on the direction of Bank of Suzhou i.e., Bank of Suzhou and Xiamen CD go up and down completely randomly.
Pair Corralation between Bank of Suzhou and Xiamen CD
Assuming the 90 days trading horizon Bank of Suzhou is expected to generate 0.75 times more return on investment than Xiamen CD. However, Bank of Suzhou is 1.33 times less risky than Xiamen CD. It trades about 0.07 of its potential returns per unit of risk. Xiamen CD is currently generating about -0.12 per unit of risk. If you would invest 794.00 in Bank of Suzhou on October 12, 2024 and sell it today you would earn a total of 12.00 from holding Bank of Suzhou or generate 1.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of Suzhou vs. Xiamen CD
Performance |
| Timeline |
| Bank of Suzhou |
| Xiamen CD |
Bank of Suzhou and Xiamen CD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of Suzhou and Xiamen CD
The main advantage of trading using opposite Bank of Suzhou and Xiamen CD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of Suzhou position performs unexpectedly, Xiamen CD 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 Xiamen CD will offset losses from the drop in Xiamen CD's long position.| Bank of Suzhou vs. Qingdao Haier Biomedical | Bank of Suzhou vs. Nanjing Vishee Medical | Bank of Suzhou vs. Hainan Haiqi Transportation | Bank of Suzhou vs. Zhongzhu Medical Holdings |
| Xiamen CD vs. Guangdong Shenglu Telecommunication | Xiamen CD vs. China Everbright Bank | Xiamen CD vs. HeNan Splendor Science | Xiamen CD 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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