Correlation Between Bank of Suzhou and Ping An
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By analyzing existing cross correlation between Bank of Suzhou and Ping An Insurance, you can compare the effects of market volatilities on Bank of Suzhou and Ping An 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 Ping An. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of Suzhou and Ping An.
Diversification Opportunities for Bank of Suzhou and Ping An
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Bank and Ping is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Bank of Suzhou and Ping An Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ping An Insurance 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 Ping An. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ping An Insurance has no effect on the direction of Bank of Suzhou i.e., Bank of Suzhou and Ping An go up and down completely randomly.
Pair Corralation between Bank of Suzhou and Ping An
Assuming the 90 days trading horizon Bank of Suzhou is expected to generate 0.61 times more return on investment than Ping An. However, Bank of Suzhou is 1.65 times less risky than Ping An. It trades about 0.23 of its potential returns per unit of risk. Ping An Insurance is currently generating about -0.1 per unit of risk. If you would invest 744.00 in Bank of Suzhou on September 1, 2024 and sell it today you would earn a total of 48.00 from holding Bank of Suzhou or generate 6.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of Suzhou vs. Ping An Insurance
Performance |
| Timeline |
| Bank of Suzhou |
| Ping An Insurance |
Bank of Suzhou and Ping An Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of Suzhou and Ping An
The main advantage of trading using opposite Bank of Suzhou and Ping An positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of Suzhou position performs unexpectedly, Ping An 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 Ping An will offset losses from the drop in Ping An's long position.| Bank of Suzhou vs. Cultural Investment Holdings | Bank of Suzhou vs. Bus Online Co | Bank of Suzhou vs. Holitech Technology Co | Bank of Suzhou vs. Zotye Automobile Co |
| Ping An vs. Industrial and Commercial | Ping An vs. China Construction Bank | Ping An vs. Bank of China | Ping An vs. Agricultural Bank of |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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