Correlation Between Hangzhou Prevail and Bank of China
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By analyzing existing cross correlation between Hangzhou Prevail Optoelectronic and Bank of China, you can compare the effects of market volatilities on Hangzhou Prevail 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 Hangzhou Prevail with a short position of Bank of China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hangzhou Prevail and Bank of China.
Diversification Opportunities for Hangzhou Prevail and Bank of China
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hangzhou and Bank is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Hangzhou Prevail Optoelectroni 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 Hangzhou Prevail 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 Hangzhou Prevail Optoelectronic 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 Hangzhou Prevail i.e., Hangzhou Prevail and Bank of China go up and down completely randomly.
Pair Corralation between Hangzhou Prevail and Bank of China
Assuming the 90 days trading horizon Hangzhou Prevail Optoelectronic is expected to generate 3.19 times more return on investment than Bank of China. However, Hangzhou Prevail is 3.19 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 0.08 per unit of risk. If you would invest 1,106 in Hangzhou Prevail Optoelectronic on November 3, 2024 and sell it today you would earn a total of 523.00 from holding Hangzhou Prevail Optoelectronic or generate 47.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hangzhou Prevail Optoelectroni vs. Bank of China
Performance |
| Timeline |
| Hangzhou Prevail Opt |
| Bank of China |
Hangzhou Prevail and Bank of China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hangzhou Prevail and Bank of China
The main advantage of trading using opposite Hangzhou Prevail and Bank of China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hangzhou Prevail 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.| Hangzhou Prevail vs. Dawning Information Industry | Hangzhou Prevail vs. Sichuan Yahua Industrial | Hangzhou Prevail vs. Zhengzhou Coal Mining | Hangzhou Prevail vs. Shenzhen Shenbao Industrial |
| Bank of China vs. Eyebright Medical Technology | Bank of China vs. Xinjiang Communications Construction | Bank of China vs. ROPEOK Technology Group | Bank of China vs. Eastern Communications Co |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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