Correlation Between Bank of Communications and Hubeiyichang Transportation
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By analyzing existing cross correlation between Bank of Communications and Hubeiyichang Transportation Group, you can compare the effects of market volatilities on Bank of Communications and Hubeiyichang Transportation 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 Hubeiyichang Transportation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of Communications and Hubeiyichang Transportation.
Diversification Opportunities for Bank of Communications and Hubeiyichang Transportation
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bank and Hubeiyichang is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Bank of Communications and Hubeiyichang Transportation Gr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubeiyichang Transportation 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 Hubeiyichang Transportation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubeiyichang Transportation has no effect on the direction of Bank of Communications i.e., Bank of Communications and Hubeiyichang Transportation go up and down completely randomly.
Pair Corralation between Bank of Communications and Hubeiyichang Transportation
Assuming the 90 days trading horizon Bank of Communications is expected to generate 0.64 times more return on investment than Hubeiyichang Transportation. However, Bank of Communications is 1.55 times less risky than Hubeiyichang Transportation. It trades about 0.12 of its potential returns per unit of risk. Hubeiyichang Transportation Group is currently generating about -0.04 per unit of risk. If you would invest 747.00 in Bank of Communications on September 28, 2024 and sell it today you would earn a total of 23.00 from holding Bank of Communications or generate 3.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of Communications vs. Hubeiyichang Transportation Gr
Performance |
| Timeline |
| Bank of Communications |
| Hubeiyichang Transportation |
Bank of Communications and Hubeiyichang Transportation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of Communications and Hubeiyichang Transportation
The main advantage of trading using opposite Bank of Communications and Hubeiyichang Transportation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of Communications position performs unexpectedly, Hubeiyichang Transportation 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 Hubeiyichang Transportation will offset losses from the drop in Hubeiyichang Transportation's long position.| Bank of Communications vs. Industrial and Commercial | Bank of Communications vs. Kweichow Moutai Co | Bank of Communications vs. Agricultural Bank of | Bank of Communications vs. China Mobile Limited |
| Hubeiyichang Transportation vs. Bank of China | Hubeiyichang Transportation vs. Kweichow Moutai Co | Hubeiyichang Transportation vs. PetroChina Co Ltd | Hubeiyichang Transportation 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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