Correlation Between Invengo Information and Bank of Communications
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By analyzing existing cross correlation between Invengo Information Technology and Bank of Communications, you can compare the effects of market volatilities on Invengo Information and Bank of Communications 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 Invengo Information with a short position of Bank of Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Invengo Information and Bank of Communications.
Diversification Opportunities for Invengo Information and Bank of Communications
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Invengo and Bank is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Invengo Information Technology and Bank of Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of Communications and Invengo Information 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 Invengo Information Technology are associated (or correlated) with Bank of Communications. 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 Communications has no effect on the direction of Invengo Information i.e., Invengo Information and Bank of Communications go up and down completely randomly.
Pair Corralation between Invengo Information and Bank of Communications
Assuming the 90 days trading horizon Invengo Information is expected to generate 1.29 times less return on investment than Bank of Communications. In addition to that, Invengo Information is 2.41 times more volatile than Bank of Communications. It trades about 0.02 of its total potential returns per unit of risk. Bank of Communications is currently generating about 0.06 per unit of volatility. If you would invest 541.00 in Bank of Communications on October 30, 2024 and sell it today you would earn a total of 184.00 from holding Bank of Communications or generate 34.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Invengo Information Technology vs. Bank of Communications
Performance |
| Timeline |
| Invengo Information |
| Bank of Communications |
Invengo Information and Bank of Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Invengo Information and Bank of Communications
The main advantage of trading using opposite Invengo Information and Bank of Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Invengo Information position performs unexpectedly, Bank of Communications 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 Communications will offset losses from the drop in Bank of Communications' long position.| Invengo Information vs. UE Furniture Co | Invengo Information vs. Hangzhou Pinming Software | Invengo Information vs. Mengtian Home Group | Invengo Information vs. Easyhome New Retail |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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