Correlation Between Jiujiang Shanshui and Bank of China
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By analyzing existing cross correlation between Jiujiang Shanshui Technology and Bank of China, you can compare the effects of market volatilities on Jiujiang Shanshui 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 Jiujiang Shanshui with a short position of Bank of China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiujiang Shanshui and Bank of China.
Diversification Opportunities for Jiujiang Shanshui and Bank of China
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Jiujiang and Bank is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Jiujiang Shanshui 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 Jiujiang Shanshui 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 Jiujiang Shanshui 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 Jiujiang Shanshui i.e., Jiujiang Shanshui and Bank of China go up and down completely randomly.
Pair Corralation between Jiujiang Shanshui and Bank of China
Assuming the 90 days trading horizon Jiujiang Shanshui is expected to generate 1.11 times less return on investment than Bank of China. In addition to that, Jiujiang Shanshui is 2.3 times more volatile than Bank of China. It trades about 0.05 of its total potential returns per unit of risk. Bank of China is currently generating about 0.13 per unit of volatility. If you would invest 490.00 in Bank of China on August 30, 2024 and sell it today you would earn a total of 14.00 from holding Bank of China or generate 2.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiujiang Shanshui Technology vs. Bank of China
Performance |
| Timeline |
| Jiujiang Shanshui |
| Bank of China |
Jiujiang Shanshui and Bank of China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiujiang Shanshui and Bank of China
The main advantage of trading using opposite Jiujiang Shanshui and Bank of China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiujiang Shanshui 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.| Jiujiang Shanshui vs. Shandong Gold Mining | Jiujiang Shanshui vs. Rongsheng Petrochemical Co | Jiujiang Shanshui vs. Inner Mongolia BaoTou | Jiujiang Shanshui vs. Jiangxi Ganfeng Lithium |
| Bank of China vs. Dhc Software Co | Bank of China vs. Jinyu Bio Technology Co | Bank of China vs. BTG Hotels Group | Bank of China vs. Linewell Software 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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