Correlation Between Bank of Communications and Zhejiang Qianjiang
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By analyzing existing cross correlation between Bank of Communications and Zhejiang Qianjiang Motorcycle, you can compare the effects of market volatilities on Bank of Communications and Zhejiang Qianjiang 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 Zhejiang Qianjiang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of Communications and Zhejiang Qianjiang.
Diversification Opportunities for Bank of Communications and Zhejiang Qianjiang
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bank and Zhejiang is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Bank of Communications and Zhejiang Qianjiang Motorcycle in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Qianjiang 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 Zhejiang Qianjiang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Qianjiang has no effect on the direction of Bank of Communications i.e., Bank of Communications and Zhejiang Qianjiang go up and down completely randomly.
Pair Corralation between Bank of Communications and Zhejiang Qianjiang
Assuming the 90 days trading horizon Bank of Communications is expected to generate 0.54 times more return on investment than Zhejiang Qianjiang. However, Bank of Communications is 1.87 times less risky than Zhejiang Qianjiang. It trades about 0.02 of its potential returns per unit of risk. Zhejiang Qianjiang Motorcycle is currently generating about 0.0 per unit of risk. If you would invest 722.00 in Bank of Communications on September 4, 2024 and sell it today you would earn a total of 2.00 from holding Bank of Communications or generate 0.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of Communications vs. Zhejiang Qianjiang Motorcycle
Performance |
| Timeline |
| Bank of Communications |
| Zhejiang Qianjiang |
Bank of Communications and Zhejiang Qianjiang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of Communications and Zhejiang Qianjiang
The main advantage of trading using opposite Bank of Communications and Zhejiang Qianjiang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of Communications position performs unexpectedly, Zhejiang Qianjiang 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 Zhejiang Qianjiang will offset losses from the drop in Zhejiang Qianjiang's long position.| Bank of Communications vs. Ming Yang Smart | Bank of Communications vs. 159681 | Bank of Communications vs. 159005 | Bank of Communications vs. Loctek Ergonomic Technology |
| Zhejiang Qianjiang vs. Bank of China | Zhejiang Qianjiang vs. Kweichow Moutai Co | Zhejiang Qianjiang vs. PetroChina Co Ltd | Zhejiang Qianjiang vs. Bank of Communications |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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