Correlation Between Shenzhen Topway and Bank of China
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By analyzing existing cross correlation between Shenzhen Topway Video and Bank of China, you can compare the effects of market volatilities on Shenzhen Topway 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 Topway with a short position of Bank of China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Topway and Bank of China.
Diversification Opportunities for Shenzhen Topway and Bank of China
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Shenzhen and Bank is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Topway Video 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 Topway 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 Topway Video 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 Topway i.e., Shenzhen Topway and Bank of China go up and down completely randomly.
Pair Corralation between Shenzhen Topway and Bank of China
Assuming the 90 days trading horizon Shenzhen Topway Video is expected to generate 4.43 times more return on investment than Bank of China. However, Shenzhen Topway is 4.43 times more volatile than Bank of China. It trades about 0.11 of its potential returns per unit of risk. Bank of China is currently generating about 0.13 per unit of risk. If you would invest 902.00 in Shenzhen Topway Video on August 30, 2024 and sell it today you would earn a total of 83.00 from holding Shenzhen Topway Video or generate 9.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Topway Video vs. Bank of China
Performance |
| Timeline |
| Shenzhen Topway Video |
| Bank of China |
Shenzhen Topway and Bank of China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Topway and Bank of China
The main advantage of trading using opposite Shenzhen Topway and Bank of China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Topway 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 Topway vs. Industrial and Commercial | Shenzhen Topway vs. Agricultural Bank of | Shenzhen Topway vs. China Construction Bank | Shenzhen Topway vs. Bank of China |
| Bank of China vs. Dhc Software Co | Bank of China vs. Jinyu Bio Technology Co | Bank of China vs. BTG Hotels Group | Bank of China vs. Linewell Software Co |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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