Correlation Between Bank of Suzhou and Anyang Iron
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By analyzing existing cross correlation between Bank of Suzhou and Anyang Iron Steel, you can compare the effects of market volatilities on Bank of Suzhou and Anyang Iron 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 Anyang Iron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of Suzhou and Anyang Iron.
Diversification Opportunities for Bank of Suzhou and Anyang Iron
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bank and Anyang is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Bank of Suzhou and Anyang Iron Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anyang Iron Steel 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 Anyang Iron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anyang Iron Steel has no effect on the direction of Bank of Suzhou i.e., Bank of Suzhou and Anyang Iron go up and down completely randomly.
Pair Corralation between Bank of Suzhou and Anyang Iron
Assuming the 90 days trading horizon Bank of Suzhou is expected to generate 0.28 times more return on investment than Anyang Iron. However, Bank of Suzhou is 3.54 times less risky than Anyang Iron. It trades about -0.03 of its potential returns per unit of risk. Anyang Iron Steel is currently generating about -0.3 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 (7.00) from holding Bank of Suzhou or give up 0.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Bank of Suzhou vs. Anyang Iron Steel
Performance |
| Timeline |
| Bank of Suzhou |
| Anyang Iron Steel |
Bank of Suzhou and Anyang Iron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of Suzhou and Anyang Iron
The main advantage of trading using opposite Bank of Suzhou and Anyang Iron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of Suzhou position performs unexpectedly, Anyang Iron 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 Anyang Iron will offset losses from the drop in Anyang Iron'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 |
| Anyang Iron vs. Ningbo Fangzheng Automobile | Anyang Iron vs. Guangxi Wuzhou Communications | Anyang Iron vs. Tangel Publishing | Anyang Iron vs. Shanghai Action Education |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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