Correlation Between Heilongjiang Publishing and Bank of Suzhou
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By analyzing existing cross correlation between Heilongjiang Publishing Media and Bank of Suzhou, you can compare the effects of market volatilities on Heilongjiang Publishing 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 Heilongjiang Publishing with a short position of Bank of Suzhou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Heilongjiang Publishing and Bank of Suzhou.
Diversification Opportunities for Heilongjiang Publishing and Bank of Suzhou
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Heilongjiang and Bank is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Heilongjiang Publishing Media 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 Heilongjiang Publishing 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 Heilongjiang Publishing Media 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 Heilongjiang Publishing i.e., Heilongjiang Publishing and Bank of Suzhou go up and down completely randomly.
Pair Corralation between Heilongjiang Publishing and Bank of Suzhou
Assuming the 90 days trading horizon Heilongjiang Publishing Media is expected to under-perform the Bank of Suzhou. In addition to that, Heilongjiang Publishing is 2.34 times more volatile than Bank of Suzhou. It trades about -0.13 of its total potential returns per unit of risk. Bank of Suzhou is currently generating about 0.01 per unit of volatility. If you would invest 792.00 in Bank of Suzhou on October 30, 2024 and sell it today you would earn a total of 1.00 from holding Bank of Suzhou or generate 0.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Heilongjiang Publishing Media vs. Bank of Suzhou
Performance |
| Timeline |
| Heilongjiang Publishing |
| Bank of Suzhou |
Heilongjiang Publishing and Bank of Suzhou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Heilongjiang Publishing and Bank of Suzhou
The main advantage of trading using opposite Heilongjiang Publishing and Bank of Suzhou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Heilongjiang Publishing 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.The idea behind Heilongjiang Publishing Media and Bank of Suzhou pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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