Correlation Between Suzhou Weizhixiang and Bank of Changsha
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By analyzing existing cross correlation between Suzhou Weizhixiang Food and Bank of Changsha, you can compare the effects of market volatilities on Suzhou Weizhixiang and Bank of Changsha 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 Changsha. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Weizhixiang and Bank of Changsha.
Diversification Opportunities for Suzhou Weizhixiang and Bank of Changsha
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Suzhou and Bank is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Weizhixiang Food and Bank of Changsha in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of Changsha 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 Changsha. 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 Changsha has no effect on the direction of Suzhou Weizhixiang i.e., Suzhou Weizhixiang and Bank of Changsha go up and down completely randomly.
Pair Corralation between Suzhou Weizhixiang and Bank of Changsha
Assuming the 90 days trading horizon Suzhou Weizhixiang Food is expected to generate 1.65 times more return on investment than Bank of Changsha. However, Suzhou Weizhixiang is 1.65 times more volatile than Bank of Changsha. It trades about 0.09 of its potential returns per unit of risk. Bank of Changsha is currently generating about 0.04 per unit of risk. If you would invest 2,335 in Suzhou Weizhixiang Food on September 12, 2024 and sell it today you would earn a total of 764.00 from holding Suzhou Weizhixiang Food or generate 32.72% 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 Changsha
Performance |
| Timeline |
| Suzhou Weizhixiang Food |
| Bank of Changsha |
Suzhou Weizhixiang and Bank of Changsha Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Weizhixiang and Bank of Changsha
The main advantage of trading using opposite Suzhou Weizhixiang and Bank of Changsha positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Weizhixiang position performs unexpectedly, Bank of Changsha 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 Changsha will offset losses from the drop in Bank of Changsha's long position.| Suzhou Weizhixiang vs. China Petroleum Chemical | Suzhou Weizhixiang vs. PetroChina Co Ltd | Suzhou Weizhixiang vs. China State Construction | Suzhou Weizhixiang vs. China Railway Group |
| Bank of Changsha vs. Panda Dairy Corp | Bank of Changsha vs. State Grid InformationCommunication | Bank of Changsha vs. Suzhou Weizhixiang Food | Bank of Changsha vs. Zhongyin Babi Food |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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