Correlation Between Suzhou Xingye and Bank of Communications
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By analyzing existing cross correlation between Suzhou Xingye Material and Bank of Communications, you can compare the effects of market volatilities on Suzhou Xingye and Bank of Communications 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 Suzhou Xingye with a short position of Bank of Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Xingye and Bank of Communications.
Diversification Opportunities for Suzhou Xingye and Bank of Communications
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Suzhou and Bank is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Xingye Material and Bank of Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of Communications and Suzhou Xingye 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 Suzhou Xingye Material are associated (or correlated) with Bank of Communications. 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 Communications has no effect on the direction of Suzhou Xingye i.e., Suzhou Xingye and Bank of Communications go up and down completely randomly.
Pair Corralation between Suzhou Xingye and Bank of Communications
Assuming the 90 days trading horizon Suzhou Xingye Material is expected to generate 3.17 times more return on investment than Bank of Communications. However, Suzhou Xingye is 3.17 times more volatile than Bank of Communications. It trades about 0.19 of its potential returns per unit of risk. Bank of Communications is currently generating about 0.02 per unit of risk. If you would invest 841.00 in Suzhou Xingye Material on November 6, 2024 and sell it today you would earn a total of 466.00 from holding Suzhou Xingye Material or generate 55.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Suzhou Xingye Material vs. Bank of Communications
Performance |
| Timeline |
| Suzhou Xingye Material |
| Bank of Communications |
Suzhou Xingye and Bank of Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Xingye and Bank of Communications
The main advantage of trading using opposite Suzhou Xingye and Bank of Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Xingye position performs unexpectedly, Bank of Communications 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 Communications will offset losses from the drop in Bank of Communications' long position.| Suzhou Xingye vs. Zijin Mining Group | Suzhou Xingye vs. Wanhua Chemical Group | Suzhou Xingye vs. Baoshan Iron Steel | Suzhou Xingye vs. Shandong Gold 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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