Correlation Between 5I5j Holding and Bohai Leasing
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By analyzing existing cross correlation between 5I5j Holding Group and Bohai Leasing Co, you can compare the effects of market volatilities on 5I5j Holding and Bohai Leasing 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 5I5j Holding with a short position of Bohai Leasing. Check out your portfolio center. Please also check ongoing floating volatility patterns of 5I5j Holding and Bohai Leasing.
Diversification Opportunities for 5I5j Holding and Bohai Leasing
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 5I5j and Bohai is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding 5I5j Holding Group and Bohai Leasing Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bohai Leasing and 5I5j Holding 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 5I5j Holding Group are associated (or correlated) with Bohai Leasing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bohai Leasing has no effect on the direction of 5I5j Holding i.e., 5I5j Holding and Bohai Leasing go up and down completely randomly.
Pair Corralation between 5I5j Holding and Bohai Leasing
Assuming the 90 days trading horizon 5I5j Holding Group is expected to under-perform the Bohai Leasing. In addition to that, 5I5j Holding is 1.41 times more volatile than Bohai Leasing Co. It trades about -0.48 of its total potential returns per unit of risk. Bohai Leasing Co is currently generating about -0.49 per unit of volatility. 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 |
5I5j Holding Group vs. Bohai Leasing Co
Performance |
| Timeline |
| 5I5j Holding Group |
| Bohai Leasing |
5I5j Holding and Bohai Leasing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 5I5j Holding and Bohai Leasing
The main advantage of trading using opposite 5I5j Holding and Bohai Leasing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 5I5j Holding position performs unexpectedly, Bohai Leasing 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 Bohai Leasing will offset losses from the drop in Bohai Leasing's long position.| 5I5j Holding vs. Bohai Leasing Co | 5I5j Holding vs. Aluminum Corp of | 5I5j Holding vs. Shanghai Newtouch Software | 5I5j Holding vs. Zhejiang Yongjin Metal |
| Bohai Leasing vs. Aba Chemicals Corp | Bohai Leasing vs. Allmed Medical Products | Bohai Leasing vs. Shandong Polymer Biochemicals | Bohai Leasing vs. Chison Medical Technologies |
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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