Correlation Between Xizi Clean and Bank of China
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By analyzing existing cross correlation between Xizi Clean Energy and Bank of China, you can compare the effects of market volatilities on Xizi Clean 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 Xizi Clean with a short position of Bank of China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xizi Clean and Bank of China.
Diversification Opportunities for Xizi Clean and Bank of China
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Xizi and Bank is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Xizi Clean Energy 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 Xizi Clean 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 Xizi Clean Energy 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 Xizi Clean i.e., Xizi Clean and Bank of China go up and down completely randomly.
Pair Corralation between Xizi Clean and Bank of China
Assuming the 90 days trading horizon Xizi Clean Energy is expected to under-perform the Bank of China. In addition to that, Xizi Clean is 1.76 times more volatile than Bank of China. It trades about -0.03 of its total potential returns per unit of risk. Bank of China is currently generating about 0.07 per unit of volatility. If you would invest 371.00 in Bank of China on September 25, 2024 and sell it today you would earn a total of 165.00 from holding Bank of China or generate 44.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xizi Clean Energy vs. Bank of China
Performance |
| Timeline |
| Xizi Clean Energy |
| Bank of China |
Xizi Clean and Bank of China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xizi Clean and Bank of China
The main advantage of trading using opposite Xizi Clean and Bank of China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xizi Clean 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.| Xizi Clean vs. Bank of China | Xizi Clean vs. Kweichow Moutai Co | Xizi Clean vs. PetroChina Co Ltd | Xizi Clean vs. Bank of Communications |
| Bank of China vs. Elite Color Environmental | Bank of China vs. Oppein Home Group | Bank of China vs. Tianjin Capital Environmental | Bank of China vs. Everdisplay Optronics Shanghai |
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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