Correlation Between Suzhou Mingzhi and Bank of Chengdu
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By analyzing existing cross correlation between Suzhou Mingzhi Technology and Bank of Chengdu, you can compare the effects of market volatilities on Suzhou Mingzhi and Bank of Chengdu 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 Mingzhi with a short position of Bank of Chengdu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Mingzhi and Bank of Chengdu.
Diversification Opportunities for Suzhou Mingzhi and Bank of Chengdu
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Suzhou and Bank is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Mingzhi Technology and Bank of Chengdu in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of Chengdu and Suzhou Mingzhi 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 Mingzhi Technology are associated (or correlated) with Bank of Chengdu. 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 Chengdu has no effect on the direction of Suzhou Mingzhi i.e., Suzhou Mingzhi and Bank of Chengdu go up and down completely randomly.
Pair Corralation between Suzhou Mingzhi and Bank of Chengdu
Assuming the 90 days trading horizon Suzhou Mingzhi Technology is expected to generate 1.63 times more return on investment than Bank of Chengdu. However, Suzhou Mingzhi is 1.63 times more volatile than Bank of Chengdu. It trades about 0.1 of its potential returns per unit of risk. Bank of Chengdu is currently generating about 0.05 per unit of risk. If you would invest 1,771 in Suzhou Mingzhi Technology on October 25, 2024 and sell it today you would earn a total of 84.00 from holding Suzhou Mingzhi Technology or generate 4.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Suzhou Mingzhi Technology vs. Bank of Chengdu
Performance |
| Timeline |
| Suzhou Mingzhi Technology |
| Bank of Chengdu |
Suzhou Mingzhi and Bank of Chengdu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Mingzhi and Bank of Chengdu
The main advantage of trading using opposite Suzhou Mingzhi and Bank of Chengdu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Mingzhi position performs unexpectedly, Bank of Chengdu 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 Chengdu will offset losses from the drop in Bank of Chengdu's long position.| Suzhou Mingzhi vs. Kweichow Moutai Co | Suzhou Mingzhi vs. Contemporary Amperex Technology | Suzhou Mingzhi vs. Beijing Roborock Technology | Suzhou Mingzhi vs. BYD Co Ltd |
| Bank of Chengdu vs. Suzhou Mingzhi Technology | Bank of Chengdu vs. Jilin Jlu Communication | Bank of Chengdu vs. China Eastern Airlines | Bank of Chengdu vs. XiaMen HongXin Electron tech |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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