Correlation Between Bank of Suzhou and Kingclean Electric
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By analyzing existing cross correlation between Bank of Suzhou and Kingclean Electric Co, you can compare the effects of market volatilities on Bank of Suzhou and Kingclean Electric 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 Kingclean Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of Suzhou and Kingclean Electric.
Diversification Opportunities for Bank of Suzhou and Kingclean Electric
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bank and Kingclean is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Bank of Suzhou and Kingclean Electric Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kingclean Electric 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 Kingclean Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kingclean Electric has no effect on the direction of Bank of Suzhou i.e., Bank of Suzhou and Kingclean Electric go up and down completely randomly.
Pair Corralation between Bank of Suzhou and Kingclean Electric
Assuming the 90 days trading horizon Bank of Suzhou is expected to generate 7.71 times less return on investment than Kingclean Electric. But when comparing it to its historical volatility, Bank of Suzhou is 1.41 times less risky than Kingclean Electric. It trades about 0.02 of its potential returns per unit of risk. Kingclean Electric Co is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 2,227 in Kingclean Electric Co on November 3, 2024 and sell it today you would earn a total of 92.00 from holding Kingclean Electric Co or generate 4.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of Suzhou vs. Kingclean Electric Co
Performance |
| Timeline |
| Bank of Suzhou |
| Kingclean Electric |
Bank of Suzhou and Kingclean Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of Suzhou and Kingclean Electric
The main advantage of trading using opposite Bank of Suzhou and Kingclean Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of Suzhou position performs unexpectedly, Kingclean Electric 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 Kingclean Electric will offset losses from the drop in Kingclean Electric's long position.| Bank of Suzhou vs. Servyou Software Group | Bank of Suzhou vs. Sichuan Hebang Biotechnology | Bank of Suzhou vs. Suzhou Douson Drilling | Bank of Suzhou vs. Hangzhou Pinming Software |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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