Correlation Between Bank of XiAn and Zhongtong Guomai
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By analyzing existing cross correlation between Bank of XiAn and Zhongtong Guomai Communication, you can compare the effects of market volatilities on Bank of XiAn and Zhongtong Guomai 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 Bank of XiAn with a short position of Zhongtong Guomai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of XiAn and Zhongtong Guomai.
Diversification Opportunities for Bank of XiAn and Zhongtong Guomai
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bank and Zhongtong is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Bank of XiAn and Zhongtong Guomai Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongtong Guomai Com and Bank of XiAn 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 Bank of XiAn are associated (or correlated) with Zhongtong Guomai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongtong Guomai Com has no effect on the direction of Bank of XiAn i.e., Bank of XiAn and Zhongtong Guomai go up and down completely randomly.
Pair Corralation between Bank of XiAn and Zhongtong Guomai
Assuming the 90 days trading horizon Bank of XiAn is expected to generate 6.13 times less return on investment than Zhongtong Guomai. But when comparing it to its historical volatility, Bank of XiAn is 2.08 times less risky than Zhongtong Guomai. It trades about 0.02 of its potential returns per unit of risk. Zhongtong Guomai Communication is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 614.00 in Zhongtong Guomai Communication on September 12, 2024 and sell it today you would earn a total of 517.00 from holding Zhongtong Guomai Communication or generate 84.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.72% |
| Values | Daily Returns |
Bank of XiAn vs. Zhongtong Guomai Communication
Performance |
| Timeline |
| Bank of XiAn |
| Zhongtong Guomai Com |
Bank of XiAn and Zhongtong Guomai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of XiAn and Zhongtong Guomai
The main advantage of trading using opposite Bank of XiAn and Zhongtong Guomai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of XiAn position performs unexpectedly, Zhongtong Guomai 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 Zhongtong Guomai will offset losses from the drop in Zhongtong Guomai's long position.| Bank of XiAn vs. Hang Xiao Steel | Bank of XiAn vs. Heilongjiang Transport Development | Bank of XiAn vs. Sino Platinum Metals Co | Bank of XiAn vs. Jiaozuo Wanfang Aluminum |
| Zhongtong Guomai vs. Gansu Jiu Steel | Zhongtong Guomai vs. Shandong Mining Machinery | Zhongtong Guomai vs. Aba Chemicals Corp | Zhongtong Guomai vs. BlueFocus Communication Group |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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