Correlation Between Bohai Leasing and 5I5j Holding
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By analyzing existing cross correlation between Bohai Leasing Co and 5I5j Holding Group, you can compare the effects of market volatilities on Bohai Leasing and 5I5j Holding 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 Bohai Leasing with a short position of 5I5j Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bohai Leasing and 5I5j Holding.
Diversification Opportunities for Bohai Leasing and 5I5j Holding
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bohai and 5I5j is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Bohai Leasing Co and 5I5j Holding Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 5I5j Holding Group and Bohai Leasing 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 Bohai Leasing Co are associated (or correlated) with 5I5j Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 5I5j Holding Group has no effect on the direction of Bohai Leasing i.e., Bohai Leasing and 5I5j Holding go up and down completely randomly.
Pair Corralation between Bohai Leasing and 5I5j Holding
Assuming the 90 days trading horizon Bohai Leasing Co is expected to generate 0.71 times more return on investment than 5I5j Holding. However, Bohai Leasing Co is 1.41 times less risky than 5I5j Holding. It trades about -0.49 of its potential returns per unit of risk. 5I5j Holding Group is currently generating about -0.48 per unit of risk. If you would invest 405.00 in Bohai Leasing Co on October 14, 2024 and sell it today you would lose (68.00) from holding Bohai Leasing Co or give up 16.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bohai Leasing Co vs. 5I5j Holding Group
Performance |
| Timeline |
| Bohai Leasing |
| 5I5j Holding Group |
Bohai Leasing and 5I5j Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bohai Leasing and 5I5j Holding
The main advantage of trading using opposite Bohai Leasing and 5I5j Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bohai Leasing position performs unexpectedly, 5I5j Holding 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 5I5j Holding will offset losses from the drop in 5I5j Holding's long position.| Bohai Leasing vs. Aba Chemicals Corp | Bohai Leasing vs. Allmed Medical Products | Bohai Leasing vs. Shandong Polymer Biochemicals | Bohai Leasing vs. Chison Medical Technologies |
| 5I5j Holding vs. Bohai Leasing Co | 5I5j Holding vs. Aluminum Corp of | 5I5j Holding vs. Shanghai Newtouch Software | 5I5j Holding vs. Zhejiang Yongjin Metal |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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