Correlation Between Jiangsu Broadcasting and Bank of China
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By analyzing existing cross correlation between Jiangsu Broadcasting Cable and Bank of China, you can compare the effects of market volatilities on Jiangsu Broadcasting 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 Jiangsu Broadcasting with a short position of Bank of China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Broadcasting and Bank of China.
Diversification Opportunities for Jiangsu Broadcasting and Bank of China
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Jiangsu and Bank is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Broadcasting Cable 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 Jiangsu Broadcasting 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 Jiangsu Broadcasting Cable 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 Jiangsu Broadcasting i.e., Jiangsu Broadcasting and Bank of China go up and down completely randomly.
Pair Corralation between Jiangsu Broadcasting and Bank of China
Assuming the 90 days trading horizon Jiangsu Broadcasting Cable is expected to generate 1.98 times more return on investment than Bank of China. However, Jiangsu Broadcasting is 1.98 times more volatile than Bank of China. It trades about 0.19 of its potential returns per unit of risk. Bank of China is currently generating about 0.14 per unit of risk. If you would invest 333.00 in Jiangsu Broadcasting Cable on September 2, 2024 and sell it today you would earn a total of 25.00 from holding Jiangsu Broadcasting Cable or generate 7.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Broadcasting Cable vs. Bank of China
Performance |
| Timeline |
| Jiangsu Broadcasting |
| Bank of China |
Jiangsu Broadcasting and Bank of China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Broadcasting and Bank of China
The main advantage of trading using opposite Jiangsu Broadcasting and Bank of China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Broadcasting 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.| Jiangsu Broadcasting vs. Lutian Machinery Co | Jiangsu Broadcasting vs. China Longyuan Power | Jiangsu Broadcasting vs. PetroChina Co Ltd | Jiangsu Broadcasting vs. Bank of China |
| Bank of China vs. Marssenger Kitchenware Co | Bank of China vs. Thinkingdom Media Group | Bank of China vs. Hengdian Entertainment Co | Bank of China vs. Lander Sports Development |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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