Correlation Between Guangzhou Jinyi and Bank of China
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By analyzing existing cross correlation between Guangzhou Jinyi Media and Bank of China, you can compare the effects of market volatilities on Guangzhou Jinyi 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 Guangzhou Jinyi with a short position of Bank of China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Jinyi and Bank of China.
Diversification Opportunities for Guangzhou Jinyi and Bank of China
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guangzhou and Bank is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Jinyi Media 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 Guangzhou Jinyi 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 Guangzhou Jinyi Media 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 Guangzhou Jinyi i.e., Guangzhou Jinyi and Bank of China go up and down completely randomly.
Pair Corralation between Guangzhou Jinyi and Bank of China
Assuming the 90 days trading horizon Guangzhou Jinyi Media is expected to under-perform the Bank of China. In addition to that, Guangzhou Jinyi is 3.35 times more volatile than Bank of China. It trades about -0.21 of its total potential returns per unit of risk. Bank of China is currently generating about 0.29 per unit of volatility. If you would invest 515.00 in Bank of China on October 10, 2024 and sell it today you would earn a total of 37.00 from holding Bank of China or generate 7.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Jinyi Media vs. Bank of China
Performance |
| Timeline |
| Guangzhou Jinyi Media |
| Bank of China |
Guangzhou Jinyi and Bank of China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Jinyi and Bank of China
The main advantage of trading using opposite Guangzhou Jinyi and Bank of China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Jinyi 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.| Guangzhou Jinyi vs. Kweichow Moutai Co | Guangzhou Jinyi vs. Contemporary Amperex Technology | Guangzhou Jinyi vs. G bits Network Technology | Guangzhou Jinyi vs. Beijing Roborock Technology |
| Bank of China vs. Guangxi Wuzhou Communications | Bank of China vs. Tianshui Huatian Technology | Bank of China vs. Jiujiang Shanshui Technology | Bank of China vs. Yindu Kitchen Equipment |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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