Correlation Between Wuhan Xianglong and Bank of Suzhou
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By analyzing existing cross correlation between Wuhan Xianglong Power and Bank of Suzhou, you can compare the effects of market volatilities on Wuhan Xianglong 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 Wuhan Xianglong with a short position of Bank of Suzhou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wuhan Xianglong and Bank of Suzhou.
Diversification Opportunities for Wuhan Xianglong and Bank of Suzhou
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Wuhan and Bank is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Wuhan Xianglong Power 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 Wuhan Xianglong 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 Wuhan Xianglong Power 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 Wuhan Xianglong i.e., Wuhan Xianglong and Bank of Suzhou go up and down completely randomly.
Pair Corralation between Wuhan Xianglong and Bank of Suzhou
Assuming the 90 days trading horizon Wuhan Xianglong Power is expected to generate 4.26 times more return on investment than Bank of Suzhou. However, Wuhan Xianglong is 4.26 times more volatile than Bank of Suzhou. It trades about 0.05 of its potential returns per unit of risk. Bank of Suzhou is currently generating about 0.19 per unit of risk. If you would invest 1,199 in Wuhan Xianglong Power on September 3, 2024 and sell it today you would earn a total of 29.00 from holding Wuhan Xianglong Power or generate 2.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wuhan Xianglong Power vs. Bank of Suzhou
Performance |
| Timeline |
| Wuhan Xianglong Power |
| Bank of Suzhou |
Wuhan Xianglong and Bank of Suzhou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wuhan Xianglong and Bank of Suzhou
The main advantage of trading using opposite Wuhan Xianglong and Bank of Suzhou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wuhan Xianglong 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.| Wuhan Xianglong vs. Cultural Investment Holdings | Wuhan Xianglong vs. Chengtun Mining Group | Wuhan Xianglong vs. Nuode Investment Co | Wuhan Xianglong vs. Metro Investment Development |
| Bank of Suzhou vs. Chongqing Road Bridge | Bank of Suzhou vs. Wuhan Xianglong Power | Bank of Suzhou vs. Empyrean Technology Co | Bank of Suzhou vs. Yuanjie Semiconductor Technology |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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