Correlation Between Bank of Suzhou and Shanghai Ziyan
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By analyzing existing cross correlation between Bank of Suzhou and Shanghai Ziyan Foods, you can compare the effects of market volatilities on Bank of Suzhou and Shanghai Ziyan 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 Shanghai Ziyan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of Suzhou and Shanghai Ziyan.
Diversification Opportunities for Bank of Suzhou and Shanghai Ziyan
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bank and Shanghai is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Bank of Suzhou and Shanghai Ziyan Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Ziyan Foods 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 Shanghai Ziyan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Ziyan Foods has no effect on the direction of Bank of Suzhou i.e., Bank of Suzhou and Shanghai Ziyan go up and down completely randomly.
Pair Corralation between Bank of Suzhou and Shanghai Ziyan
Assuming the 90 days trading horizon Bank of Suzhou is expected to generate 0.6 times more return on investment than Shanghai Ziyan. However, Bank of Suzhou is 1.67 times less risky than Shanghai Ziyan. It trades about 0.06 of its potential returns per unit of risk. Shanghai Ziyan Foods is currently generating about 0.01 per unit of risk. If you would invest 683.00 in Bank of Suzhou on October 14, 2024 and sell it today you would earn a total of 121.00 from holding Bank of Suzhou or generate 17.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of Suzhou vs. Shanghai Ziyan Foods
Performance |
| Timeline |
| Bank of Suzhou |
| Shanghai Ziyan Foods |
Bank of Suzhou and Shanghai Ziyan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of Suzhou and Shanghai Ziyan
The main advantage of trading using opposite Bank of Suzhou and Shanghai Ziyan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of Suzhou position performs unexpectedly, Shanghai Ziyan 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 Shanghai Ziyan will offset losses from the drop in Shanghai Ziyan's long position.| Bank of Suzhou vs. Sichuan Fulin Transportation | Bank of Suzhou vs. Emdoor Information Co | Bank of Suzhou vs. Sublime China Information | Bank of Suzhou vs. Jinxiandai Information Industry |
| Shanghai Ziyan vs. Xiamen Bank Co | Shanghai Ziyan vs. Inspur Software Co | Shanghai Ziyan vs. China Everbright Bank | Shanghai Ziyan vs. Jiangsu Financial Leasing |
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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