Correlation Between Bank of Communications and Jiangsu Hoperun
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By analyzing existing cross correlation between Bank of Communications and Jiangsu Hoperun Software, you can compare the effects of market volatilities on Bank of Communications and Jiangsu Hoperun 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 Jiangsu Hoperun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of Communications and Jiangsu Hoperun.
Diversification Opportunities for Bank of Communications and Jiangsu Hoperun
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and Jiangsu is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Bank of Communications and Jiangsu Hoperun Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Hoperun Software 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 Jiangsu Hoperun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Hoperun Software has no effect on the direction of Bank of Communications i.e., Bank of Communications and Jiangsu Hoperun go up and down completely randomly.
Pair Corralation between Bank of Communications and Jiangsu Hoperun
Assuming the 90 days trading horizon Bank of Communications is expected to under-perform the Jiangsu Hoperun. But the stock apears to be less risky and, when comparing its historical volatility, Bank of Communications is 2.79 times less risky than Jiangsu Hoperun. The stock trades about -0.29 of its potential returns per unit of risk. The Jiangsu Hoperun Software is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 5,295 in Jiangsu Hoperun Software on October 29, 2024 and sell it today you would lose (279.00) from holding Jiangsu Hoperun Software or give up 5.27% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Bank of Communications vs. Jiangsu Hoperun Software
Performance |
Timeline |
Bank of Communications |
Jiangsu Hoperun Software |
Bank of Communications and Jiangsu Hoperun Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bank of Communications and Jiangsu Hoperun
The main advantage of trading using opposite Bank of Communications and Jiangsu Hoperun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of Communications position performs unexpectedly, Jiangsu Hoperun 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 Jiangsu Hoperun will offset losses from the drop in Jiangsu Hoperun's long position.Bank of Communications vs. HUAQIN TECHNOLOGY LTD | Bank of Communications vs. Linktel Technologies Co | Bank of Communications vs. Shenzhen Urban Transport | Bank of Communications vs. Dhc Software Co |
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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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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