Correlation Between Longmaster Information and Bank of China
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By analyzing existing cross correlation between Longmaster Information Tech and Bank of China, you can compare the effects of market volatilities on Longmaster Information 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 Longmaster Information with a short position of Bank of China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Longmaster Information and Bank of China.
Diversification Opportunities for Longmaster Information and Bank of China
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Longmaster and Bank is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Longmaster Information Tech 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 Longmaster Information 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 Longmaster Information Tech 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 Longmaster Information i.e., Longmaster Information and Bank of China go up and down completely randomly.
Pair Corralation between Longmaster Information and Bank of China
Assuming the 90 days trading horizon Longmaster Information Tech is expected to under-perform the Bank of China. In addition to that, Longmaster Information is 2.65 times more volatile than Bank of China. It trades about -0.26 of its total potential returns per unit of risk. Bank of China is currently generating about 0.17 per unit of volatility. If you would invest 523.00 in Bank of China on October 20, 2024 and sell it today you would earn a total of 22.00 from holding Bank of China or generate 4.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Longmaster Information Tech vs. Bank of China
Performance |
| Timeline |
| Longmaster Information |
| Bank of China |
Longmaster Information and Bank of China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Longmaster Information and Bank of China
The main advantage of trading using opposite Longmaster Information and Bank of China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Longmaster Information 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.| Longmaster Information vs. Xinjiang Baodi Mining | Longmaster Information vs. Ye Chiu Metal | Longmaster Information vs. Shengda Mining Co | Longmaster Information vs. Chengtun Mining Group |
| Bank of China vs. Shaanxi Construction Machinery | Bank of China vs. Digital China Information | Bank of China vs. Longmaster Information Tech | Bank of China vs. Ningbo Construction 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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