Correlation Between Bank of Communications and GKHT Medical
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By analyzing existing cross correlation between Bank of Communications and GKHT Medical Technology, you can compare the effects of market volatilities on Bank of Communications and GKHT Medical 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 GKHT Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of Communications and GKHT Medical.
Diversification Opportunities for Bank of Communications and GKHT Medical
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Bank and GKHT is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Bank of Communications and GKHT Medical Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GKHT Medical Technology 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 GKHT Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GKHT Medical Technology has no effect on the direction of Bank of Communications i.e., Bank of Communications and GKHT Medical go up and down completely randomly.
Pair Corralation between Bank of Communications and GKHT Medical
Assuming the 90 days trading horizon Bank of Communications is expected to generate 0.42 times more return on investment than GKHT Medical. However, Bank of Communications is 2.38 times less risky than GKHT Medical. It trades about 0.07 of its potential returns per unit of risk. GKHT Medical Technology is currently generating about -0.04 per unit of risk. If you would invest 577.00 in Bank of Communications on August 29, 2024 and sell it today you would earn a total of 170.00 from holding Bank of Communications or generate 29.46% 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. GKHT Medical Technology
Performance |
| Timeline |
| Bank of Communications |
| GKHT Medical Technology |
Bank of Communications and GKHT Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of Communications and GKHT Medical
The main advantage of trading using opposite Bank of Communications and GKHT Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of Communications position performs unexpectedly, GKHT Medical 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 GKHT Medical will offset losses from the drop in GKHT Medical's long position.| Bank of Communications vs. Kweichow Moutai Co | Bank of Communications vs. Contemporary Amperex Technology | Bank of Communications vs. G bits Network Technology | Bank of Communications vs. BYD Co Ltd |
| GKHT Medical vs. Ningbo Ligong Online | GKHT Medical vs. Guangdong Advertising Co | GKHT Medical vs. Hainan Haiqi Transportation | GKHT Medical vs. Jinhui Liquor Co |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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