Correlation Between Gansu Yasheng and Bank of China
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By analyzing existing cross correlation between Gansu Yasheng Industrial and Bank of China, you can compare the effects of market volatilities on Gansu Yasheng 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 Gansu Yasheng with a short position of Bank of China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Yasheng and Bank of China.
Diversification Opportunities for Gansu Yasheng and Bank of China
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Gansu and Bank is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Yasheng Industrial 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 Gansu Yasheng 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 Gansu Yasheng Industrial 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 Gansu Yasheng i.e., Gansu Yasheng and Bank of China go up and down completely randomly.
Pair Corralation between Gansu Yasheng and Bank of China
Assuming the 90 days trading horizon Gansu Yasheng Industrial is expected to generate 1.48 times more return on investment than Bank of China. However, Gansu Yasheng is 1.48 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 0.07 per unit of risk. If you would invest 239.00 in Gansu Yasheng Industrial on October 7, 2024 and sell it today you would earn a total of 37.00 from holding Gansu Yasheng Industrial or generate 15.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gansu Yasheng Industrial vs. Bank of China
Performance |
| Timeline |
| Gansu Yasheng Industrial |
| Bank of China |
Gansu Yasheng and Bank of China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Yasheng and Bank of China
The main advantage of trading using opposite Gansu Yasheng and Bank of China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Yasheng 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.| Gansu Yasheng vs. Qingdao Foods Co | Gansu Yasheng vs. Guangdong Wens Foodstuff | Gansu Yasheng vs. Guilin Seamild Foods | Gansu Yasheng vs. Xinjiang Baodi Mining |
| Bank of China vs. Shuhua Sports Co | Bank of China vs. Heilongjiang Publishing Media | Bank of China vs. Cowealth Medical China | Bank of China vs. Hengdian Entertainment 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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