Correlation Between Zhongshan Public and Bank of China
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By analyzing existing cross correlation between Zhongshan Public Utilities and Bank of China, you can compare the effects of market volatilities on Zhongshan Public 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 Zhongshan Public with a short position of Bank of China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongshan Public and Bank of China.
Diversification Opportunities for Zhongshan Public and Bank of China
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Zhongshan and Bank is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Zhongshan Public Utilities 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 Zhongshan Public 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 Zhongshan Public Utilities 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 Zhongshan Public i.e., Zhongshan Public and Bank of China go up and down completely randomly.
Pair Corralation between Zhongshan Public and Bank of China
Assuming the 90 days trading horizon Zhongshan Public Utilities is expected to generate 1.35 times more return on investment than Bank of China. However, Zhongshan Public is 1.35 times more volatile than Bank of China. It trades about 0.08 of its potential returns per unit of risk. Bank of China is currently generating about 0.09 per unit of risk. If you would invest 700.00 in Zhongshan Public Utilities on November 1, 2024 and sell it today you would earn a total of 179.00 from holding Zhongshan Public Utilities or generate 25.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongshan Public Utilities vs. Bank of China
Performance |
| Timeline |
| Zhongshan Public Uti |
| Bank of China |
Zhongshan Public and Bank of China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongshan Public and Bank of China
The main advantage of trading using opposite Zhongshan Public and Bank of China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongshan Public 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.| Zhongshan Public vs. Citic Guoan Wine | Zhongshan Public vs. Zbit Semiconductor A | Zhongshan Public vs. Nexchip Semiconductor Corp | Zhongshan Public vs. Cansino Biologics |
| Bank of China vs. HaiXin Foods Co | Bank of China vs. Zhongjing Food Co | Bank of China vs. Offshore Oil Engineering | Bank of China vs. Yingde Greatchem Chemicals |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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