Correlation Between Bank of Suzhou and Jiangsu Financial
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By analyzing existing cross correlation between Bank of Suzhou and Jiangsu Financial Leasing, you can compare the effects of market volatilities on Bank of Suzhou and Jiangsu Financial 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 Jiangsu Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of Suzhou and Jiangsu Financial.
Diversification Opportunities for Bank of Suzhou and Jiangsu Financial
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bank and Jiangsu is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Bank of Suzhou and Jiangsu Financial Leasing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Financial Leasing 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 Jiangsu Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Financial Leasing has no effect on the direction of Bank of Suzhou i.e., Bank of Suzhou and Jiangsu Financial go up and down completely randomly.
Pair Corralation between Bank of Suzhou and Jiangsu Financial
Assuming the 90 days trading horizon Bank of Suzhou is expected to generate 1.76 times less return on investment than Jiangsu Financial. But when comparing it to its historical volatility, Bank of Suzhou is 1.14 times less risky than Jiangsu Financial. It trades about 0.03 of its potential returns per unit of risk. Jiangsu Financial Leasing is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 398.00 in Jiangsu Financial Leasing on October 25, 2024 and sell it today you would earn a total of 128.00 from holding Jiangsu Financial Leasing or generate 32.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of Suzhou vs. Jiangsu Financial Leasing
Performance |
| Timeline |
| Bank of Suzhou |
| Jiangsu Financial Leasing |
Bank of Suzhou and Jiangsu Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of Suzhou and Jiangsu Financial
The main advantage of trading using opposite Bank of Suzhou and Jiangsu Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of Suzhou position performs unexpectedly, Jiangsu Financial 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 Jiangsu Financial will offset losses from the drop in Jiangsu Financial's long position.| Bank of Suzhou vs. Bank of China | Bank of Suzhou vs. Kweichow Moutai Co | Bank of Suzhou vs. PetroChina Co Ltd | Bank of Suzhou vs. Bank of Communications |
| Jiangsu Financial vs. Jiangsu Jinling Sports | Jiangsu Financial vs. Kidswant Children Products | Jiangsu Financial vs. Shenzhen Zqgame | Jiangsu Financial vs. Xinjiang Baodi Mining |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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