Correlation Between Bank of Communications and Beijing Baolande
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By analyzing existing cross correlation between Bank of Communications and Beijing Baolande Software, you can compare the effects of market volatilities on Bank of Communications and Beijing Baolande 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 Beijing Baolande. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of Communications and Beijing Baolande.
Diversification Opportunities for Bank of Communications and Beijing Baolande
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and Beijing is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Bank of Communications and Beijing Baolande Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Baolande 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 Beijing Baolande. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Baolande Software has no effect on the direction of Bank of Communications i.e., Bank of Communications and Beijing Baolande go up and down completely randomly.
Pair Corralation between Bank of Communications and Beijing Baolande
Assuming the 90 days trading horizon Bank of Communications is expected to under-perform the Beijing Baolande. But the stock apears to be less risky and, when comparing its historical volatility, Bank of Communications is 2.74 times less risky than Beijing Baolande. The stock trades about -0.08 of its potential returns per unit of risk. The Beijing Baolande Software is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 2,414 in Beijing Baolande Software on November 5, 2024 and sell it today you would earn a total of 298.00 from holding Beijing Baolande Software or generate 12.34% 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. Beijing Baolande Software
Performance |
| Timeline |
| Bank of Communications |
| Beijing Baolande Software |
Bank of Communications and Beijing Baolande Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of Communications and Beijing Baolande
The main advantage of trading using opposite Bank of Communications and Beijing Baolande positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of Communications position performs unexpectedly, Beijing Baolande 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 Beijing Baolande will offset losses from the drop in Beijing Baolande's long position.| Bank of Communications vs. HUAQIN TECHNOLOGY LTD | Bank of Communications vs. Jinyu Bio Technology Co | Bank of Communications vs. ROPEOK Technology Group | Bank of Communications vs. HanS Laser Tech |
| Beijing Baolande vs. Sino Medical Sciences | Beijing Baolande vs. Zhonghong Pulin Medical | Beijing Baolande vs. Aier Eye Hospital | Beijing Baolande vs. Double Medical 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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