Correlation Between Bank of Communications and Jinxiandai Information
Specify exactly 2 symbols:
By analyzing existing cross correlation between Bank of Communications and Jinxiandai Information Industry, you can compare the effects of market volatilities on Bank of Communications and Jinxiandai 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 Jinxiandai Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of Communications and Jinxiandai Information.
Diversification Opportunities for Bank of Communications and Jinxiandai Information
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Bank and Jinxiandai is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Bank of Communications and Jinxiandai Information Industr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinxiandai 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 Jinxiandai Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinxiandai Information has no effect on the direction of Bank of Communications i.e., Bank of Communications and Jinxiandai Information go up and down completely randomly.
Pair Corralation between Bank of Communications and Jinxiandai Information
Assuming the 90 days trading horizon Bank of Communications is expected to generate 0.36 times more return on investment than Jinxiandai Information. However, Bank of Communications is 2.81 times less risky than Jinxiandai Information. It trades about 0.08 of its potential returns per unit of risk. Jinxiandai Information Industry is currently generating about 0.02 per unit of risk. If you would invest 456.00 in Bank of Communications on November 5, 2024 and sell it today you would earn a total of 269.00 from holding Bank of Communications or generate 58.99% 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. Jinxiandai Information Industr
Performance |
| Timeline |
| Bank of Communications |
| Jinxiandai Information |
Bank of Communications and Jinxiandai Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of Communications and Jinxiandai Information
The main advantage of trading using opposite Bank of Communications and Jinxiandai Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of Communications position performs unexpectedly, Jinxiandai 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 Jinxiandai Information will offset losses from the drop in Jinxiandai Information's long position.The idea behind Bank of Communications and Jinxiandai Information Industry 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.
| Jinxiandai Information vs. Hygon Information Technology | Jinxiandai Information vs. BTG Hotels Group | Jinxiandai Information vs. Qilu Bank Co | Jinxiandai Information vs. Biwin Storage Technology |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Stocks Directory Find actively traded stocks across global markets | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |