Correlation Between Beijing Wandong and Bank of China
Specify exactly 2 symbols:
By analyzing existing cross correlation between Beijing Wandong Medical and Bank of China, you can compare the effects of market volatilities on Beijing Wandong 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 Beijing Wandong with a short position of Bank of China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Wandong and Bank of China.
Diversification Opportunities for Beijing Wandong and Bank of China
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Beijing and Bank is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Wandong Medical 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 Beijing Wandong 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 Beijing Wandong Medical 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 Beijing Wandong i.e., Beijing Wandong and Bank of China go up and down completely randomly.
Pair Corralation between Beijing Wandong and Bank of China
Assuming the 90 days trading horizon Beijing Wandong Medical is expected to generate 1.7 times more return on investment than Bank of China. However, Beijing Wandong is 1.7 times more volatile than Bank of China. It trades about 0.08 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 1,423 in Beijing Wandong Medical on August 29, 2024 and sell it today you would earn a total of 320.00 from holding Beijing Wandong Medical or generate 22.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Wandong Medical vs. Bank of China
Performance |
| Timeline |
| Beijing Wandong Medical |
| Bank of China |
Beijing Wandong and Bank of China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Wandong and Bank of China
The main advantage of trading using opposite Beijing Wandong and Bank of China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Wandong 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.| Beijing Wandong vs. Sunwave Communications Co | Beijing Wandong vs. Hubei Xingfa Chemicals | Beijing Wandong vs. Shandong Polymer Biochemicals | Beijing Wandong vs. 360 Security Technology |
| 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |