Correlation Between Suzhou Weizhixiang and Bank of Suzhou
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By analyzing existing cross correlation between Suzhou Weizhixiang Food and Bank of Suzhou, you can compare the effects of market volatilities on Suzhou Weizhixiang 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 Suzhou Weizhixiang with a short position of Bank of Suzhou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Weizhixiang and Bank of Suzhou.
Diversification Opportunities for Suzhou Weizhixiang and Bank of Suzhou
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Suzhou and Bank is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Weizhixiang Food 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 Suzhou Weizhixiang 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 Weizhixiang Food 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 Suzhou Weizhixiang i.e., Suzhou Weizhixiang and Bank of Suzhou go up and down completely randomly.
Pair Corralation between Suzhou Weizhixiang and Bank of Suzhou
Assuming the 90 days trading horizon Suzhou Weizhixiang Food is expected to generate 4.31 times more return on investment than Bank of Suzhou. However, Suzhou Weizhixiang is 4.31 times more volatile than Bank of Suzhou. It trades about 0.28 of its potential returns per unit of risk. Bank of Suzhou is currently generating about 0.33 per unit of risk. If you would invest 2,391 in Suzhou Weizhixiang Food on September 13, 2024 and sell it today you would earn a total of 708.00 from holding Suzhou Weizhixiang Food or generate 29.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Suzhou Weizhixiang Food vs. Bank of Suzhou
Performance |
| Timeline |
| Suzhou Weizhixiang Food |
| Bank of Suzhou |
Suzhou Weizhixiang and Bank of Suzhou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Weizhixiang and Bank of Suzhou
The main advantage of trading using opposite Suzhou Weizhixiang and Bank of Suzhou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Weizhixiang 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.| Suzhou Weizhixiang vs. Jiangsu Jinling Sports | Suzhou Weizhixiang vs. Jinsanjiang Silicon Material | Suzhou Weizhixiang vs. Advanced Technology Materials | Suzhou Weizhixiang vs. Guangzhou Tinci Materials |
| 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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