Correlation Between Guangzhou Boji and Bank of China
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By analyzing existing cross correlation between Guangzhou Boji Medical and Bank of China, you can compare the effects of market volatilities on Guangzhou Boji 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 Boji with a short position of Bank of China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Boji and Bank of China.
Diversification Opportunities for Guangzhou Boji and Bank of China
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Guangzhou and Bank is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Boji 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 Guangzhou Boji 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 Boji 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 Guangzhou Boji i.e., Guangzhou Boji and Bank of China go up and down completely randomly.
Pair Corralation between Guangzhou Boji and Bank of China
Assuming the 90 days trading horizon Guangzhou Boji Medical is expected to generate 2.42 times more return on investment than Bank of China. However, Guangzhou Boji is 2.42 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 0.07 per unit of risk. If you would invest 712.00 in Guangzhou Boji Medical on September 5, 2024 and sell it today you would earn a total of 215.00 from holding Guangzhou Boji Medical or generate 30.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Boji Medical vs. Bank of China
Performance |
| Timeline |
| Guangzhou Boji Medical |
| Bank of China |
Guangzhou Boji and Bank of China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Boji and Bank of China
The main advantage of trading using opposite Guangzhou Boji and Bank of China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Boji 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 Boji vs. Kweichow Moutai Co | Guangzhou Boji vs. Contemporary Amperex Technology | Guangzhou Boji vs. G bits Network Technology | Guangzhou Boji vs. Beijing Roborock Technology |
| Bank of China vs. Jafron Biomedical Co | Bank of China vs. Dezhan HealthCare Co | Bank of China vs. Ningbo Ligong Online | Bank of China vs. Guangzhou Boji Medical |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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