Correlation Between Shenzhen Glory and Bank of China
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By analyzing existing cross correlation between Shenzhen Glory Medical and Bank of China, you can compare the effects of market volatilities on Shenzhen Glory 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 Glory with a short position of Bank of China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Glory and Bank of China.
Diversification Opportunities for Shenzhen Glory and Bank of China
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Shenzhen and Bank is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Glory Medical 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 Glory 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 Glory Medical 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 Glory i.e., Shenzhen Glory and Bank of China go up and down completely randomly.
Pair Corralation between Shenzhen Glory and Bank of China
Assuming the 90 days trading horizon Shenzhen Glory Medical is expected to generate 2.41 times more return on investment than Bank of China. However, Shenzhen Glory is 2.41 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 0.13 per unit of risk. If you would invest 318.00 in Shenzhen Glory Medical on August 30, 2024 and sell it today you would earn a total of 12.00 from holding Shenzhen Glory Medical or generate 3.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Glory Medical vs. Bank of China
Performance |
| Timeline |
| Shenzhen Glory Medical |
| Bank of China |
Shenzhen Glory and Bank of China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Glory and Bank of China
The main advantage of trading using opposite Shenzhen Glory and Bank of China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Glory 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 Glory vs. Bank of China | Shenzhen Glory vs. Kweichow Moutai Co | Shenzhen Glory vs. PetroChina Co Ltd | Shenzhen Glory vs. Bank of Communications |
| Bank of China vs. Kuangda Technology Group | Bank of China vs. Olympic Circuit Technology | Bank of China vs. Western Superconducting Tech | Bank of China vs. Sinocelltech Group |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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