Correlation Between Porton Fine and Bank of China
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By analyzing existing cross correlation between Porton Fine Chemicals and Bank of China, you can compare the effects of market volatilities on Porton Fine 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 Porton Fine with a short position of Bank of China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Porton Fine and Bank of China.
Diversification Opportunities for Porton Fine and Bank of China
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Porton and Bank is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Porton Fine Chemicals 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 Porton Fine 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 Porton Fine Chemicals 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 Porton Fine i.e., Porton Fine and Bank of China go up and down completely randomly.
Pair Corralation between Porton Fine and Bank of China
Assuming the 90 days trading horizon Porton Fine Chemicals is expected to generate 1.06 times more return on investment than Bank of China. However, Porton Fine is 1.06 times more volatile than Bank of China. It trades about 0.06 of its potential returns per unit of risk. Bank of China is currently generating about 0.05 per unit of risk. If you would invest 1,553 in Porton Fine Chemicals on November 6, 2024 and sell it today you would earn a total of 23.00 from holding Porton Fine Chemicals or generate 1.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Porton Fine Chemicals vs. Bank of China
Performance |
| Timeline |
| Porton Fine Chemicals |
| Bank of China |
Porton Fine and Bank of China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Porton Fine and Bank of China
The main advantage of trading using opposite Porton Fine and Bank of China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Porton Fine 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.| Porton Fine vs. Heren Health Co | Porton Fine vs. Yunnan Jianzhijia Health Chain | Porton Fine vs. Shandong Sinoglory Health | Porton Fine vs. Anhui Huaren Health |
| Bank of China vs. Fibocom Wireless | Bank of China vs. Nanjing Putian Telecommunications | Bank of China vs. Jilin Jlu Communication | Bank of China vs. Queclink Wireless Solutions |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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