Correlation Between Jiangsu Jinling and Bank of Suzhou
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By analyzing existing cross correlation between Jiangsu Jinling Sports and Bank of Suzhou, you can compare the effects of market volatilities on Jiangsu Jinling and Bank of Suzhou 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 Jiangsu Jinling with a short position of Bank of Suzhou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Jinling and Bank of Suzhou.
Diversification Opportunities for Jiangsu Jinling and Bank of Suzhou
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiangsu and Bank is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Jinling Sports and Bank of Suzhou in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of Suzhou and Jiangsu Jinling 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 Jiangsu Jinling Sports are associated (or correlated) with Bank of Suzhou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of Suzhou has no effect on the direction of Jiangsu Jinling i.e., Jiangsu Jinling and Bank of Suzhou go up and down completely randomly.
Pair Corralation between Jiangsu Jinling and Bank of Suzhou
Assuming the 90 days trading horizon Jiangsu Jinling Sports is expected to generate 1.74 times more return on investment than Bank of Suzhou. However, Jiangsu Jinling is 1.74 times more volatile than Bank of Suzhou. It trades about 0.06 of its potential returns per unit of risk. Bank of Suzhou is currently generating about 0.05 per unit of risk. If you would invest 1,279 in Jiangsu Jinling Sports on September 5, 2024 and sell it today you would earn a total of 244.00 from holding Jiangsu Jinling Sports or generate 19.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Jinling Sports vs. Bank of Suzhou
Performance |
| Timeline |
| Jiangsu Jinling Sports |
| Bank of Suzhou |
Jiangsu Jinling and Bank of Suzhou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Jinling and Bank of Suzhou
The main advantage of trading using opposite Jiangsu Jinling and Bank of Suzhou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Jinling position performs unexpectedly, Bank of Suzhou 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 Bank of Suzhou will offset losses from the drop in Bank of Suzhou's long position.| Jiangsu Jinling vs. Spring Airlines Co | Jiangsu Jinling vs. Tianjin Capital Environmental | Jiangsu Jinling vs. Ningbo Ligong Online | Jiangsu Jinling vs. Elite Color Environmental |
| Bank of Suzhou vs. Ligao Foods CoLtd | Bank of Suzhou vs. Suzhou Weizhixiang Food | Bank of Suzhou vs. China Express Airlines | Bank of Suzhou vs. Great Sun Foods Co |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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