Correlation Between Bank of Beijing Co Ltd and Guilin Seamild
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By analyzing existing cross correlation between Bank of Beijing and Guilin Seamild Foods, you can compare the effects of market volatilities on Bank of Beijing Co Ltd and Guilin Seamild 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 Beijing Co Ltd with a short position of Guilin Seamild. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of Beijing Co Ltd and Guilin Seamild.
Diversification Opportunities for Bank of Beijing Co Ltd and Guilin Seamild
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bank and Guilin is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Bank of Beijing and Guilin Seamild Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guilin Seamild Foods and Bank of Beijing Co Ltd 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 Beijing are associated (or correlated) with Guilin Seamild. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guilin Seamild Foods has no effect on the direction of Bank of Beijing Co Ltd i.e., Bank of Beijing Co Ltd and Guilin Seamild go up and down completely randomly.
Pair Corralation between Bank of Beijing Co Ltd and Guilin Seamild
Assuming the 90 days trading horizon Bank of Beijing is expected to generate 0.53 times more return on investment than Guilin Seamild. However, Bank of Beijing is 1.89 times less risky than Guilin Seamild. It trades about 0.07 of its potential returns per unit of risk. Guilin Seamild Foods is currently generating about 0.01 per unit of risk. If you would invest 404.00 in Bank of Beijing on September 2, 2024 and sell it today you would earn a total of 168.00 from holding Bank of Beijing or generate 41.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of Beijing vs. Guilin Seamild Foods
Performance |
| Timeline |
| Bank of Beijing Co Ltd |
| Guilin Seamild Foods |
Bank of Beijing Co Ltd and Guilin Seamild Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of Beijing Co Ltd and Guilin Seamild
The main advantage of trading using opposite Bank of Beijing Co Ltd and Guilin Seamild positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of Beijing Co Ltd position performs unexpectedly, Guilin Seamild 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 Guilin Seamild will offset losses from the drop in Guilin Seamild's long position.| Bank of Beijing Co Ltd vs. Jiahe Foods Industry | Bank of Beijing Co Ltd vs. Guilin Seamild Foods | Bank of Beijing Co Ltd vs. Great Sun Foods Co | Bank of Beijing Co Ltd vs. Guangzhou Ruoyuchen Information |
| Guilin Seamild vs. Nanjing Putian Telecommunications | Guilin Seamild vs. Shenzhen Hifuture Electric | Guilin Seamild vs. Tianjin Realty Development | Guilin Seamild vs. Shenyang Huitian Thermal |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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