Correlation Between Shanghai Yaoji and Bank of Suzhou
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By analyzing existing cross correlation between Shanghai Yaoji Playing and Bank of Suzhou, you can compare the effects of market volatilities on Shanghai Yaoji 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 Shanghai Yaoji with a short position of Bank of Suzhou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Yaoji and Bank of Suzhou.
Diversification Opportunities for Shanghai Yaoji and Bank of Suzhou
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shanghai and Bank is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Yaoji Playing 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 Shanghai Yaoji 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 Shanghai Yaoji Playing 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 Shanghai Yaoji i.e., Shanghai Yaoji and Bank of Suzhou go up and down completely randomly.
Pair Corralation between Shanghai Yaoji and Bank of Suzhou
Assuming the 90 days trading horizon Shanghai Yaoji Playing is expected to generate 2.44 times more return on investment than Bank of Suzhou. However, Shanghai Yaoji is 2.44 times more volatile than Bank of Suzhou. It trades about 0.21 of its potential returns per unit of risk. Bank of Suzhou is currently generating about 0.18 per unit of risk. If you would invest 2,047 in Shanghai Yaoji Playing on September 12, 2024 and sell it today you would earn a total of 1,264 from holding Shanghai Yaoji Playing or generate 61.75% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Shanghai Yaoji Playing vs. Bank of Suzhou
Performance |
Timeline |
Shanghai Yaoji Playing |
Bank of Suzhou |
Shanghai Yaoji and Bank of Suzhou Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shanghai Yaoji and Bank of Suzhou
The main advantage of trading using opposite Shanghai Yaoji and Bank of Suzhou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Yaoji 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.Shanghai Yaoji vs. China Satellite Communications | Shanghai Yaoji vs. By health | Shanghai Yaoji vs. Yunnan Jianzhijia Health Chain | Shanghai Yaoji vs. China World Trade |
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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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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