Correlation Between China Citic and Suzhou Xingye
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By analyzing existing cross correlation between China Citic Bank and Suzhou Xingye Material, you can compare the effects of market volatilities on China Citic and Suzhou Xingye 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 China Citic with a short position of Suzhou Xingye. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Citic and Suzhou Xingye.
Diversification Opportunities for China Citic and Suzhou Xingye
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between China and Suzhou is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding China Citic Bank and Suzhou Xingye Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Xingye Material and China Citic 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 China Citic Bank are associated (or correlated) with Suzhou Xingye. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou Xingye Material has no effect on the direction of China Citic i.e., China Citic and Suzhou Xingye go up and down completely randomly.
Pair Corralation between China Citic and Suzhou Xingye
Assuming the 90 days trading horizon China Citic is expected to generate 31.2 times less return on investment than Suzhou Xingye. But when comparing it to its historical volatility, China Citic Bank is 3.26 times less risky than Suzhou Xingye. It trades about 0.02 of its potential returns per unit of risk. Suzhou Xingye Material is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 846.00 in Suzhou Xingye Material on December 30, 2024 and sell it today you would earn a total of 324.00 from holding Suzhou Xingye Material or generate 38.3% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
China Citic Bank vs. Suzhou Xingye Material
Performance |
Timeline |
China Citic Bank |
Suzhou Xingye Material |
China Citic and Suzhou Xingye Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with China Citic and Suzhou Xingye
The main advantage of trading using opposite China Citic and Suzhou Xingye positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Citic position performs unexpectedly, Suzhou Xingye 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 Suzhou Xingye will offset losses from the drop in Suzhou Xingye's long position.China Citic vs. Zhongjie Technology CoLtd | China Citic vs. Soyea Technology Co | China Citic vs. Eyebright Medical Technology | China Citic vs. GuangDong Leary New |
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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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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