Correlation Between Bank of Communications and Qiming Information
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By analyzing existing cross correlation between Bank of Communications and Qiming Information Technology, you can compare the effects of market volatilities on Bank of Communications and Qiming Information 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 Qiming Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of Communications and Qiming Information.
Diversification Opportunities for Bank of Communications and Qiming Information
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bank and Qiming is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Bank of Communications and Qiming Information Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qiming Information 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 Qiming Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qiming Information has no effect on the direction of Bank of Communications i.e., Bank of Communications and Qiming Information go up and down completely randomly.
Pair Corralation between Bank of Communications and Qiming Information
Assuming the 90 days trading horizon Bank of Communications is expected to generate 0.4 times more return on investment than Qiming Information. However, Bank of Communications is 2.51 times less risky than Qiming Information. It trades about -0.01 of its potential returns per unit of risk. Qiming Information Technology is currently generating about -0.09 per unit of risk. If you would invest 733.00 in Bank of Communications on October 30, 2024 and sell it today you would lose (8.00) from holding Bank of Communications or give up 1.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of Communications vs. Qiming Information Technology
Performance |
| Timeline |
| Bank of Communications |
| Qiming Information |
Bank of Communications and Qiming Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of Communications and Qiming Information
The main advantage of trading using opposite Bank of Communications and Qiming Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of Communications position performs unexpectedly, Qiming Information 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 Qiming Information will offset losses from the drop in Qiming Information's long position.The idea behind Bank of Communications and Qiming Information Technology pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Qiming Information vs. Bank of China | Qiming Information vs. Kweichow Moutai Co | Qiming Information vs. PetroChina Co Ltd | Qiming Information 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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