Correlation Between Bank of Communications and King Strong
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By analyzing existing cross correlation between Bank of Communications and King Strong New Material, you can compare the effects of market volatilities on Bank of Communications and King Strong 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 King Strong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of Communications and King Strong.
Diversification Opportunities for Bank of Communications and King Strong
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Bank and King is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Bank of Communications and King Strong New Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on King Strong New 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 King Strong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of King Strong New has no effect on the direction of Bank of Communications i.e., Bank of Communications and King Strong go up and down completely randomly.
Pair Corralation between Bank of Communications and King Strong
Assuming the 90 days trading horizon Bank of Communications is expected to generate 0.53 times more return on investment than King Strong. However, Bank of Communications is 1.9 times less risky than King Strong. It trades about 0.14 of its potential returns per unit of risk. King Strong New Material is currently generating about -0.03 per unit of risk. If you would invest 743.00 in Bank of Communications on September 29, 2024 and sell it today you would earn a total of 28.00 from holding Bank of Communications or generate 3.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of Communications vs. King Strong New Material
Performance |
| Timeline |
| Bank of Communications |
| King Strong New |
Bank of Communications and King Strong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of Communications and King Strong
The main advantage of trading using opposite Bank of Communications and King Strong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of Communications position performs unexpectedly, King Strong 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 King Strong will offset losses from the drop in King Strong'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 |
| King Strong vs. Shandong Longda Meat | King Strong vs. Jiugui Liquor Co | King Strong vs. V V Food | King Strong vs. Sichuan Teway Food |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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