Correlation Between Suwen Electric and Bank of China
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By analyzing existing cross correlation between Suwen Electric Energy and Bank of China, you can compare the effects of market volatilities on Suwen Electric and Bank of China 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 Suwen Electric with a short position of Bank of China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suwen Electric and Bank of China.
Diversification Opportunities for Suwen Electric and Bank of China
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Suwen and Bank is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Suwen Electric Energy and Bank of China in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of China and Suwen Electric 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 Suwen Electric Energy are associated (or correlated) with Bank of China. 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 China has no effect on the direction of Suwen Electric i.e., Suwen Electric and Bank of China go up and down completely randomly.
Pair Corralation between Suwen Electric and Bank of China
Assuming the 90 days trading horizon Suwen Electric Energy is expected to under-perform the Bank of China. In addition to that, Suwen Electric is 2.08 times more volatile than Bank of China. It trades about -0.08 of its total potential returns per unit of risk. Bank of China is currently generating about 0.38 per unit of volatility. If you would invest 481.00 in Bank of China on September 12, 2024 and sell it today you would earn a total of 40.00 from holding Bank of China or generate 8.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Suwen Electric Energy vs. Bank of China
Performance |
| Timeline |
| Suwen Electric Energy |
| Bank of China |
Suwen Electric and Bank of China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suwen Electric and Bank of China
The main advantage of trading using opposite Suwen Electric and Bank of China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suwen Electric position performs unexpectedly, Bank of China 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 China will offset losses from the drop in Bank of China's long position.| Suwen Electric vs. Xiangyu Medical Co | Suwen Electric vs. Blue Sail Medical | Suwen Electric vs. Guangzhou Boji Medical | Suwen Electric vs. Hengkang Medical Group |
| Bank of China vs. Chenzhou Jingui Silver | Bank of China vs. Hangzhou Pinming Software | Bank of China vs. Shandong Mining Machinery | Bank of China vs. Tibet Huayu Mining |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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