Correlation Between Bank of Communications and China Express
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By analyzing existing cross correlation between Bank of Communications and China Express Airlines, you can compare the effects of market volatilities on Bank of Communications and China Express 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 China Express. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of Communications and China Express.
Diversification Opportunities for Bank of Communications and China Express
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Bank and China is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Bank of Communications and China Express Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Express Airlines 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 China Express. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Express Airlines has no effect on the direction of Bank of Communications i.e., Bank of Communications and China Express go up and down completely randomly.
Pair Corralation between Bank of Communications and China Express
Assuming the 90 days trading horizon Bank of Communications is expected to generate 0.69 times more return on investment than China Express. However, Bank of Communications is 1.46 times less risky than China Express. It trades about 0.05 of its potential returns per unit of risk. China Express Airlines is currently generating about -0.2 per unit of risk. If you would invest 728.00 in Bank of Communications on November 18, 2024 and sell it today you would earn a total of 6.00 from holding Bank of Communications or generate 0.82% 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. China Express Airlines
Performance |
| Timeline |
| Bank of Communications |
| China Express Airlines |
Bank of Communications and China Express Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of Communications and China Express
The main advantage of trading using opposite Bank of Communications and China Express positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of Communications position performs unexpectedly, China Express 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 China Express will offset losses from the drop in China Express' long position.| Bank of Communications vs. Mengtian Home Group | Bank of Communications vs. Vohringer Home Technology | Bank of Communications vs. Shanghai Shuixing Home | Bank of Communications vs. Qumei Furniture Group |
| China Express vs. Industrial and Commercial | China Express vs. Agricultural Bank of | China Express vs. China Construction Bank | China Express vs. Bank of China |
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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