Correlation Between Bank of Suzhou and Dow Jones
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By analyzing existing cross correlation between Bank of Suzhou and Dow Jones Industrial, you can compare the effects of market volatilities on Bank of Suzhou and Dow Jones 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 Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of Suzhou and Dow Jones.
Diversification Opportunities for Bank of Suzhou and Dow Jones
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Bank and Dow is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Bank of Suzhou and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial 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 Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Bank of Suzhou i.e., Bank of Suzhou and Dow Jones go up and down completely randomly.
Pair Corralation between Bank of Suzhou and Dow Jones
Assuming the 90 days trading horizon Bank of Suzhou is expected to generate 1.3 times less return on investment than Dow Jones. In addition to that, Bank of Suzhou is 2.05 times more volatile than Dow Jones Industrial. It trades about 0.03 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.08 per unit of volatility. If you would invest 3,424,593 in Dow Jones Industrial on November 2, 2024 and sell it today you would earn a total of 1,063,620 from holding Dow Jones Industrial or generate 31.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 96.96% |
| Values | Daily Returns |
Bank of Suzhou vs. Dow Jones Industrial
Performance |
| Timeline |
Bank of Suzhou and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Bank of Suzhou
Pair trading matchups for Bank of Suzhou
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Bank of Suzhou and Dow Jones
The main advantage of trading using opposite Bank of Suzhou and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of Suzhou position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| Bank of Suzhou vs. Eastern Air Logistics | Bank of Suzhou vs. Guangzhou Restaurants Group | Bank of Suzhou vs. Tonghua Grape Wine | Bank of Suzhou vs. Shandong Hi Speed RoadBridge |
| Dow Jones vs. Boston Properties | Dow Jones vs. Suntory Beverage Food | Dow Jones vs. Envista Holdings Corp | Dow Jones vs. Fevertree Drinks Plc |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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