Correlation Between Bank of Communications and Xian International
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By analyzing existing cross correlation between Bank of Communications and Xian International Medical, you can compare the effects of market volatilities on Bank of Communications and Xian International 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 Communications with a short position of Xian International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of Communications and Xian International.
Diversification Opportunities for Bank of Communications and Xian International
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Bank and Xian is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Bank of Communications and Xian International Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xian International and Bank of Communications 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 Communications are associated (or correlated) with Xian International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xian International has no effect on the direction of Bank of Communications i.e., Bank of Communications and Xian International go up and down completely randomly.
Pair Corralation between Bank of Communications and Xian International
Assuming the 90 days trading horizon Bank of Communications is expected to under-perform the Xian International. But the stock apears to be less risky and, when comparing its historical volatility, Bank of Communications is 2.93 times less risky than Xian International. The stock trades about -0.17 of its potential returns per unit of risk. The Xian International Medical is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 538.00 in Xian International Medical on November 30, 2024 and sell it today you would earn a total of 53.00 from holding Xian International Medical or generate 9.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of Communications vs. Xian International Medical
Performance |
| Timeline |
| Bank of Communications |
| Xian International |
Bank of Communications and Xian International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of Communications and Xian International
The main advantage of trading using opposite Bank of Communications and Xian International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of Communications position performs unexpectedly, Xian International 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 Xian International will offset losses from the drop in Xian International's long position.| Bank of Communications vs. Vats Liquor Chain | Bank of Communications vs. Zhongshan Public Utilities | Bank of Communications vs. CIMC Vehicles Co | Bank of Communications vs. Changchun Engley Automobile |
| Xian International vs. Nuode Investment Co | Xian International vs. Jointo Energy Investment | Xian International vs. Hubei Geoway Investment | Xian International vs. Porton Fine Chemicals |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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