Correlation Between King Strong and Bank of China
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By analyzing existing cross correlation between King Strong New Material and Bank of China, you can compare the effects of market volatilities on King Strong 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 King Strong with a short position of Bank of China. Check out your portfolio center. Please also check ongoing floating volatility patterns of King Strong and Bank of China.
Diversification Opportunities for King Strong and Bank of China
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between King and Bank is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding King Strong New Material 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 King Strong 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 King Strong New Material 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 King Strong i.e., King Strong and Bank of China go up and down completely randomly.
Pair Corralation between King Strong and Bank of China
Assuming the 90 days trading horizon King Strong is expected to generate 6.83 times less return on investment than Bank of China. In addition to that, King Strong is 3.16 times more volatile than Bank of China. It trades about 0.02 of its total potential returns per unit of risk. Bank of China is currently generating about 0.33 per unit of volatility. If you would invest 479.00 in Bank of China on September 13, 2024 and sell it today you would earn a total of 34.00 from holding Bank of China or generate 7.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
King Strong New Material vs. Bank of China
Performance |
| Timeline |
| King Strong New |
| Bank of China |
King Strong and Bank of China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with King Strong and Bank of China
The main advantage of trading using opposite King Strong and Bank of China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if King Strong 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.| King Strong vs. Ming Yang Smart | King Strong vs. 159681 | King Strong vs. 159005 | King Strong vs. Loctek Ergonomic Technology |
| Bank of China vs. AUPU Home Style | Bank of China vs. HaiXin Foods Co | Bank of China vs. JuneYao Dairy Co | Bank of China vs. Zhengzhou Qianweiyangchu Food |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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