Correlation Between Thunder Software and Bank of China
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By analyzing existing cross correlation between Thunder Software Technology and Bank of China, you can compare the effects of market volatilities on Thunder Software 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 Thunder Software with a short position of Bank of China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thunder Software and Bank of China.
Diversification Opportunities for Thunder Software and Bank of China
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Thunder and Bank is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Thunder Software Technology 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 Thunder Software 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 Thunder Software Technology 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 Thunder Software i.e., Thunder Software and Bank of China go up and down completely randomly.
Pair Corralation between Thunder Software and Bank of China
Assuming the 90 days trading horizon Thunder Software Technology is expected to under-perform the Bank of China. In addition to that, Thunder Software is 2.62 times more volatile than Bank of China. It trades about -0.01 of its total potential returns per unit of risk. Bank of China is currently generating about 0.09 per unit of volatility. If you would invest 300.00 in Bank of China on October 31, 2024 and sell it today you would earn a total of 245.00 from holding Bank of China or generate 81.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thunder Software Technology vs. Bank of China
Performance |
| Timeline |
| Thunder Software Tec |
| Bank of China |
Thunder Software and Bank of China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thunder Software and Bank of China
The main advantage of trading using opposite Thunder Software and Bank of China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thunder Software 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.| Thunder Software vs. TongFu Microelectronics Co | Thunder Software vs. East Money Information | Thunder Software vs. Jiangxi Lianchuang Opto electronic | Thunder Software vs. HengFeng Information Technology |
| Bank of China vs. Ningbo MedicalSystem Biotechnology | Bank of China vs. Liaoning Chengda Biotechnology | Bank of China vs. Zhongshan Public Utilities | Bank of China vs. Sichuan Hebang Biotechnology |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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