Correlation Between Ziel Home and Bank of China Limited
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By analyzing existing cross correlation between Ziel Home Furnishing and Bank of China, you can compare the effects of market volatilities on Ziel Home and Bank of China Limited 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 Ziel Home with a short position of Bank of China Limited. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ziel Home and Bank of China Limited.
Diversification Opportunities for Ziel Home and Bank of China Limited
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ziel and Bank is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Ziel Home Furnishing and Bank of China in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of China Limited and Ziel Home 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 Ziel Home Furnishing are associated (or correlated) with Bank of China Limited. 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 Limited has no effect on the direction of Ziel Home i.e., Ziel Home and Bank of China Limited go up and down completely randomly.
Pair Corralation between Ziel Home and Bank of China Limited
Assuming the 90 days trading horizon Ziel Home Furnishing is expected to generate 1.56 times more return on investment than Bank of China Limited. However, Ziel Home is 1.56 times more volatile than Bank of China. It trades about 0.03 of its potential returns per unit of risk. Bank of China is currently generating about -0.04 per unit of risk. If you would invest 1,971 in Ziel Home Furnishing on November 27, 2024 and sell it today you would earn a total of 10.00 from holding Ziel Home Furnishing or generate 0.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ziel Home Furnishing vs. Bank of China
Performance |
| Timeline |
| Ziel Home Furnishing |
| Bank of China Limited |
Ziel Home and Bank of China Limited Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ziel Home and Bank of China Limited
The main advantage of trading using opposite Ziel Home and Bank of China Limited positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ziel Home position performs unexpectedly, Bank of China Limited 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 Limited will offset losses from the drop in Bank of China Limited's long position.| Ziel Home vs. China Life Insurance | Ziel Home vs. Cinda Securities Co | Ziel Home vs. Piotech Inc A | Ziel Home vs. Dongxing Sec Co |
| Bank of China Limited vs. China World Trade | Bank of China Limited vs. Henan Shuanghui Investment | Bank of China Limited vs. Huawen Media Investment | Bank of China Limited vs. Zhongrun Resources Investment |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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