Correlation Between Xian International and Bank of China
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By analyzing existing cross correlation between Xian International Medical and Bank of China, you can compare the effects of market volatilities on Xian International and Bank of China 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 Xian International with a short position of Bank of China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xian International and Bank of China.
Diversification Opportunities for Xian International and Bank of China
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Xian and Bank is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Xian International Medical and Bank of China in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of China and Xian International 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 Xian International Medical are associated (or correlated) with Bank of China. 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 China has no effect on the direction of Xian International i.e., Xian International and Bank of China go up and down completely randomly.
Pair Corralation between Xian International and Bank of China
Assuming the 90 days trading horizon Xian International is expected to generate 1.28 times less return on investment than Bank of China. In addition to that, Xian International is 2.18 times more volatile than Bank of China. It trades about 0.02 of its total potential returns per unit of risk. Bank of China is currently generating about 0.06 per unit of volatility. If you would invest 448.00 in Bank of China on September 3, 2024 and sell it today you would earn a total of 53.00 from holding Bank of China or generate 11.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xian International Medical vs. Bank of China
Performance |
| Timeline |
| Xian International |
| Bank of China |
Xian International and Bank of China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xian International and Bank of China
The main advantage of trading using opposite Xian International and Bank of China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xian International position performs unexpectedly, Bank of China 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 China will offset losses from the drop in Bank of China's long position.| Xian International vs. Heren Health Co | Xian International vs. Yindu Kitchen Equipment | Xian International vs. PKU HealthCare Corp | Xian International vs. By health |
| Bank of China vs. Tongyu Communication | Bank of China vs. Guangzhou Haige Communications | Bank of China vs. Everdisplay Optronics Shanghai | Bank of China vs. Wuhan Yangtze Communication |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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