Correlation Between Datang HuaYin and Bank of Communications
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By analyzing existing cross correlation between Datang HuaYin Electric and Bank of Communications, you can compare the effects of market volatilities on Datang HuaYin and Bank of Communications 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 Datang HuaYin with a short position of Bank of Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Datang HuaYin and Bank of Communications.
Diversification Opportunities for Datang HuaYin and Bank of Communications
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Datang and Bank is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Datang HuaYin Electric and Bank of Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of Communications and Datang HuaYin 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 Datang HuaYin Electric are associated (or correlated) with Bank of Communications. 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 Communications has no effect on the direction of Datang HuaYin i.e., Datang HuaYin and Bank of Communications go up and down completely randomly.
Pair Corralation between Datang HuaYin and Bank of Communications
Assuming the 90 days trading horizon Datang HuaYin Electric is expected to under-perform the Bank of Communications. In addition to that, Datang HuaYin is 1.56 times more volatile than Bank of Communications. It trades about -0.05 of its total potential returns per unit of risk. Bank of Communications is currently generating about 0.12 per unit of volatility. If you would invest 711.00 in Bank of Communications on September 1, 2024 and sell it today you would earn a total of 22.00 from holding Bank of Communications or generate 3.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Datang HuaYin Electric vs. Bank of Communications
Performance |
| Timeline |
| Datang HuaYin Electric |
| Bank of Communications |
Datang HuaYin and Bank of Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Datang HuaYin and Bank of Communications
The main advantage of trading using opposite Datang HuaYin and Bank of Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Datang HuaYin position performs unexpectedly, Bank of Communications 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 Communications will offset losses from the drop in Bank of Communications' long position.| Datang HuaYin vs. Chengdu Kanghua Biological | Datang HuaYin vs. Beijing Wantai Biological | Datang HuaYin vs. Suzhou Novoprotein Scientific | Datang HuaYin vs. Aluminum Corp of |
| Bank of Communications vs. Nancal Energy Saving Tech | Bank of Communications vs. Postal Savings Bank | Bank of Communications vs. Bank of Suzhou | Bank of Communications vs. Unisplendour Corp |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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