Correlation Between Great Sun and Bank of Suzhou
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By analyzing existing cross correlation between Great Sun Foods Co and Bank of Suzhou, you can compare the effects of market volatilities on Great Sun 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 Great Sun with a short position of Bank of Suzhou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Great Sun and Bank of Suzhou.
Diversification Opportunities for Great Sun and Bank of Suzhou
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Great and Bank is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Great Sun Foods Co 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 Great Sun 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 Great Sun Foods Co 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 Great Sun i.e., Great Sun and Bank of Suzhou go up and down completely randomly.
Pair Corralation between Great Sun and Bank of Suzhou
Assuming the 90 days trading horizon Great Sun is expected to generate 2.93 times less return on investment than Bank of Suzhou. In addition to that, Great Sun is 2.42 times more volatile than Bank of Suzhou. It trades about 0.05 of its total potential returns per unit of risk. Bank of Suzhou is currently generating about 0.33 per unit of volatility. If you would invest 736.00 in Bank of Suzhou on September 13, 2024 and sell it today you would earn a total of 58.00 from holding Bank of Suzhou or generate 7.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Great Sun Foods Co vs. Bank of Suzhou
Performance |
| Timeline |
| Great Sun Foods |
| Bank of Suzhou |
Great Sun and Bank of Suzhou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Great Sun and Bank of Suzhou
The main advantage of trading using opposite Great Sun and Bank of Suzhou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Great Sun 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.| Great Sun vs. Nanjing Putian Telecommunications | Great Sun vs. Tianjin Realty Development | Great Sun vs. Kangyue Technology Co | Great Sun vs. Shenzhen Hifuture Electric |
| Bank of Suzhou vs. Cultural Investment Holdings | Bank of Suzhou vs. Gome Telecom Equipment | Bank of Suzhou vs. Holitech Technology Co | Bank of Suzhou vs. Zotye Automobile 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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