Correlation Between Bank of Communications and Eyebright Medical
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By analyzing existing cross correlation between Bank of Communications and Eyebright Medical Technology, you can compare the effects of market volatilities on Bank of Communications and Eyebright 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 Eyebright Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of Communications and Eyebright Medical.
Diversification Opportunities for Bank of Communications and Eyebright Medical
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and Eyebright is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Bank of Communications and Eyebright Medical Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eyebright Medical 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 Eyebright Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eyebright Medical has no effect on the direction of Bank of Communications i.e., Bank of Communications and Eyebright Medical go up and down completely randomly.
Pair Corralation between Bank of Communications and Eyebright Medical
Assuming the 90 days trading horizon Bank of Communications is expected to generate 0.4 times more return on investment than Eyebright Medical. However, Bank of Communications is 2.52 times less risky than Eyebright Medical. It trades about 0.08 of its potential returns per unit of risk. Eyebright Medical Technology is currently generating about -0.03 per unit of risk. If you would invest 453.00 in Bank of Communications on October 27, 2024 and sell it today you would earn a total of 264.00 from holding Bank of Communications or generate 58.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of Communications vs. Eyebright Medical Technology
Performance |
| Timeline |
| Bank of Communications |
| Eyebright Medical |
Bank of Communications and Eyebright Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of Communications and Eyebright Medical
The main advantage of trading using opposite Bank of Communications and Eyebright Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of Communications position performs unexpectedly, Eyebright 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 Eyebright Medical will offset losses from the drop in Eyebright Medical's long position.| Bank of Communications vs. COL Digital Publishing | Bank of Communications vs. Shanghai Action Education | Bank of Communications vs. Xinhua Winshare Publishing | Bank of Communications vs. Yankershop Food Co |
| Eyebright Medical vs. Agricultural Bank of | Eyebright Medical vs. Industrial and Commercial | Eyebright Medical vs. Bank of China | Eyebright Medical vs. China Construction Bank |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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