Correlation Between Shenzhen Noposion and Bank of China
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By analyzing existing cross correlation between Shenzhen Noposion Agrochemicals and Bank of China, you can compare the effects of market volatilities on Shenzhen Noposion 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 Shenzhen Noposion with a short position of Bank of China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Noposion and Bank of China.
Diversification Opportunities for Shenzhen Noposion and Bank of China
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and Bank is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Noposion Agrochemical 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 Shenzhen Noposion 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 Shenzhen Noposion Agrochemicals 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 Shenzhen Noposion i.e., Shenzhen Noposion and Bank of China go up and down completely randomly.
Pair Corralation between Shenzhen Noposion and Bank of China
Assuming the 90 days trading horizon Shenzhen Noposion Agrochemicals is expected to generate 1.84 times more return on investment than Bank of China. However, Shenzhen Noposion is 1.84 times more volatile than Bank of China. It trades about 0.06 of its potential returns per unit of risk. Bank of China is currently generating about 0.1 per unit of risk. If you would invest 537.00 in Shenzhen Noposion Agrochemicals on October 11, 2024 and sell it today you would earn a total of 479.00 from holding Shenzhen Noposion Agrochemicals or generate 89.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Noposion Agrochemical vs. Bank of China
Performance |
| Timeline |
| Shenzhen Noposion |
| Bank of China |
Shenzhen Noposion and Bank of China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Noposion and Bank of China
The main advantage of trading using opposite Shenzhen Noposion and Bank of China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Noposion 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.| Shenzhen Noposion vs. SSAW Hotels Resorts | Shenzhen Noposion vs. Zhengzhou Coal Mining | Shenzhen Noposion vs. BTG Hotels Group | Shenzhen Noposion vs. Shenzhen Silver Basis |
| Bank of China vs. Kuang Chi Technologies | Bank of China vs. Shenzhen Noposion Agrochemicals | Bank of China vs. Dymatic Chemicals | Bank of China vs. XinJiang GuoTong Pipeline |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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