Correlation Between Bank of Communications and Sino Medical
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By analyzing existing cross correlation between Bank of Communications and Sino Medical Sciences, you can compare the effects of market volatilities on Bank of Communications and Sino 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 Sino Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of Communications and Sino Medical.
Diversification Opportunities for Bank of Communications and Sino Medical
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and Sino is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Bank of Communications and Sino Medical Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sino Medical Sciences 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 Sino Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sino Medical Sciences has no effect on the direction of Bank of Communications i.e., Bank of Communications and Sino Medical go up and down completely randomly.
Pair Corralation between Bank of Communications and Sino Medical
Assuming the 90 days trading horizon Bank of Communications is expected to generate 1.49 times less return on investment than Sino Medical. But when comparing it to its historical volatility, Bank of Communications is 2.89 times less risky than Sino Medical. It trades about 0.09 of its potential returns per unit of risk. Sino Medical Sciences is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 662.00 in Sino Medical Sciences on August 29, 2024 and sell it today you would earn a total of 399.00 from holding Sino Medical Sciences or generate 60.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of Communications vs. Sino Medical Sciences
Performance |
| Timeline |
| Bank of Communications |
| Sino Medical Sciences |
Bank of Communications and Sino Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of Communications and Sino Medical
The main advantage of trading using opposite Bank of Communications and Sino Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of Communications position performs unexpectedly, Sino 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 Sino Medical will offset losses from the drop in Sino Medical's long position.| Bank of Communications vs. Bank of China | Bank of Communications vs. PetroChina Co Ltd | Bank of Communications vs. Ping An Insurance | Bank of Communications vs. China Mobile Limited |
| Sino Medical vs. Bank of China | Sino Medical vs. Kweichow Moutai Co | Sino Medical vs. PetroChina Co Ltd | Sino Medical vs. Bank of Communications |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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