Correlation Between Dirui Industrial and Bank of China
Specify exactly 2 symbols:
By analyzing existing cross correlation between Dirui Industrial Co and Bank of China, you can compare the effects of market volatilities on Dirui Industrial 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 Dirui Industrial with a short position of Bank of China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dirui Industrial and Bank of China.
Diversification Opportunities for Dirui Industrial and Bank of China
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Dirui and Bank is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Dirui Industrial Co 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 Dirui Industrial 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 Dirui Industrial Co 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 Dirui Industrial i.e., Dirui Industrial and Bank of China go up and down completely randomly.
Pair Corralation between Dirui Industrial and Bank of China
Assuming the 90 days trading horizon Dirui Industrial Co is expected to under-perform the Bank of China. In addition to that, Dirui Industrial is 2.83 times more volatile than Bank of China. It trades about -0.09 of its total potential returns per unit of risk. Bank of China is currently generating about 0.0 per unit of volatility. If you would invest 491.00 in Bank of China on August 26, 2024 and sell it today you would earn a total of 0.00 from holding Bank of China or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dirui Industrial Co vs. Bank of China
Performance |
| Timeline |
| Dirui Industrial |
| Bank of China |
Dirui Industrial and Bank of China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dirui Industrial and Bank of China
The main advantage of trading using opposite Dirui Industrial and Bank of China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dirui Industrial 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.| Dirui Industrial vs. Bank of China | Dirui Industrial vs. Kweichow Moutai Co | Dirui Industrial vs. PetroChina Co Ltd | Dirui Industrial vs. Bank of Communications |
| Bank of China vs. Jiujiang Shanshui Technology | Bank of China vs. Dhc Software Co | Bank of China vs. Changchun UP Optotech | Bank of China vs. Shenzhen Topway Video |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |