Correlation Between BANK OF NINGBO and BANK OF SUZHOU

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Can any of the company-specific risk be diversified away by investing in both BANK OF NINGBO and BANK OF SUZHOU at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining BANK OF NINGBO and BANK OF SUZHOU into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BANK OF NINGBO and BANK OF SUZHOU, you can compare the effects of market volatilities on BANK OF NINGBO 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 BANK OF NINGBO with a short position of BANK OF SUZHOU. Check out your portfolio center. Please also check ongoing floating volatility patterns of BANK OF NINGBO and BANK OF SUZHOU.

Diversification Opportunities for BANK OF NINGBO and BANK OF SUZHOU

-0.23
  Correlation Coefficient

Very good diversification

The 3 months correlation between 002142 and 002966 is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding BANK OF NINGBO CO and BANK OF SUZHOU CO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BANK OF SUZHOU and BANK OF NINGBO 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 NINGBO 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 BANK OF NINGBO i.e., BANK OF NINGBO and BANK OF SUZHOU go up and down completely randomly.

Pair Corralation between BANK OF NINGBO and BANK OF SUZHOU

Assuming the 90 days trading horizon BANK OF NINGBO is expected to generate 5.12 times less return on investment than BANK OF SUZHOU. In addition to that, BANK OF NINGBO is 1.69 times more volatile than BANK OF SUZHOU. It trades about 0.0 of its total potential returns per unit of risk. BANK OF SUZHOU is currently generating about 0.03 per unit of volatility. If you would invest  652.00  in BANK OF SUZHOU on August 31, 2022 and sell it today you would earn a total of  95.00  from holding BANK OF SUZHOU or generate 14.57% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy99.49%
ValuesDaily Returns

BANK OF NINGBO CO  vs.  BANK OF SUZHOU CO

 Performance (%) 
       Timeline  
BANK OF NINGBO 
002142 Performance
3 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in BANK OF NINGBO are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, BANK OF NINGBO may actually be approaching a critical reversion point that can send shares even higher in December 2022.

002142 Price Channel

BANK OF SUZHOU 
002966 Performance
14 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in BANK OF SUZHOU are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, BANK OF SUZHOU sustained solid returns over the last few months and may actually be approaching a breakup point.

002966 Price Channel

BANK OF NINGBO and BANK OF SUZHOU Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with BANK OF NINGBO and BANK OF SUZHOU

The main advantage of trading using opposite BANK OF NINGBO and BANK OF SUZHOU positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BANK OF NINGBO 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.
BANK OF NINGBO vs. BANK OF SUZHOU
BANK OF NINGBO vs. CHINA MEHECO LTD
BANK OF NINGBO vs. GUIYANG XINTIAN PH
The idea behind BANK OF NINGBO 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.
BANK OF SUZHOU vs. CHINA MEHECO LTD
BANK OF SUZHOU vs. GUIYANG XINTIAN PH
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .

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