Correlation Between Bank of Suzhou and Soochow Securities
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By analyzing existing cross correlation between Bank of Suzhou and Soochow Securities Co, you can compare the effects of market volatilities on Bank of Suzhou and Soochow Securities 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 Bank of Suzhou with a short position of Soochow Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of Suzhou and Soochow Securities.
Diversification Opportunities for Bank of Suzhou and Soochow Securities
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and Soochow is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Bank of Suzhou and Soochow Securities Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Soochow Securities and Bank of Suzhou 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 Bank of Suzhou are associated (or correlated) with Soochow Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Soochow Securities has no effect on the direction of Bank of Suzhou i.e., Bank of Suzhou and Soochow Securities go up and down completely randomly.
Pair Corralation between Bank of Suzhou and Soochow Securities
Assuming the 90 days trading horizon Bank of Suzhou is expected to generate 0.65 times more return on investment than Soochow Securities. However, Bank of Suzhou is 1.54 times less risky than Soochow Securities. It trades about -0.02 of its potential returns per unit of risk. Soochow Securities Co is currently generating about -0.3 per unit of risk. If you would invest 794.00 in Bank of Suzhou on October 8, 2024 and sell it today you would lose (4.00) from holding Bank of Suzhou or give up 0.5% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Bank of Suzhou vs. Soochow Securities Co
Performance |
Timeline |
Bank of Suzhou |
Soochow Securities |
Bank of Suzhou and Soochow Securities Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bank of Suzhou and Soochow Securities
The main advantage of trading using opposite Bank of Suzhou and Soochow Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of Suzhou position performs unexpectedly, Soochow Securities 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 Soochow Securities will offset losses from the drop in Soochow Securities' long position.Bank of Suzhou vs. Iat Automobile Technology | Bank of Suzhou vs. Nanjing Putian Telecommunications | Bank of Suzhou vs. Ningbo Jintian Copper | Bank of Suzhou vs. Hubei Yingtong Telecommunication |
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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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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