Correlation Between Bank of Suzhou and Shandong Homey
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By analyzing existing cross correlation between Bank of Suzhou and Shandong Homey Aquatic, you can compare the effects of market volatilities on Bank of Suzhou and Shandong Homey 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 Homey. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of Suzhou and Shandong Homey.
Diversification Opportunities for Bank of Suzhou and Shandong Homey
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Bank and Shandong is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Bank of Suzhou and Shandong Homey Aquatic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Homey Aquatic 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 Homey. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Homey Aquatic has no effect on the direction of Bank of Suzhou i.e., Bank of Suzhou and Shandong Homey go up and down completely randomly.
Pair Corralation between Bank of Suzhou and Shandong Homey
Assuming the 90 days trading horizon Bank of Suzhou is expected to generate 0.5 times more return on investment than Shandong Homey. However, Bank of Suzhou is 2.0 times less risky than Shandong Homey. It trades about 0.07 of its potential returns per unit of risk. Shandong Homey Aquatic is currently generating about 0.01 per unit of risk. If you would invest 631.00 in Bank of Suzhou on October 14, 2024 and sell it today you would earn a total of 173.00 from holding Bank of Suzhou or generate 27.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of Suzhou vs. Shandong Homey Aquatic
Performance |
| Timeline |
| Bank of Suzhou |
| Shandong Homey Aquatic |
Bank of Suzhou and Shandong Homey Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of Suzhou and Shandong Homey
The main advantage of trading using opposite Bank of Suzhou and Shandong Homey positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of Suzhou position performs unexpectedly, Shandong Homey 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 Homey will offset losses from the drop in Shandong Homey'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 Homey vs. Guangdong Wens Foodstuff | Shandong Homey vs. Guilin Seamild Foods | Shandong Homey vs. Olympic Circuit Technology | Shandong Homey vs. Linewell Software Co |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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