Correlation Between Bank of Communications and National Silicon
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By analyzing existing cross correlation between Bank of Communications and National Silicon Industry, you can compare the effects of market volatilities on Bank of Communications and National Silicon 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 National Silicon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of Communications and National Silicon.
Diversification Opportunities for Bank of Communications and National Silicon
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Bank and National is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Bank of Communications and National Silicon Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Silicon Industry 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 National Silicon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Silicon Industry has no effect on the direction of Bank of Communications i.e., Bank of Communications and National Silicon go up and down completely randomly.
Pair Corralation between Bank of Communications and National Silicon
Assuming the 90 days trading horizon Bank of Communications is expected to generate 2.36 times less return on investment than National Silicon. But when comparing it to its historical volatility, Bank of Communications is 2.81 times less risky than National Silicon. It trades about 0.02 of its potential returns per unit of risk. National Silicon Industry is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 2,170 in National Silicon Industry on September 4, 2024 and sell it today you would lose (5.00) from holding National Silicon Industry or give up 0.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of Communications vs. National Silicon Industry
Performance |
| Timeline |
| Bank of Communications |
| National Silicon Industry |
Bank of Communications and National Silicon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of Communications and National Silicon
The main advantage of trading using opposite Bank of Communications and National Silicon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of Communications position performs unexpectedly, National Silicon 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 National Silicon will offset losses from the drop in National Silicon's long position.| Bank of Communications vs. Ming Yang Smart | Bank of Communications vs. 159681 | Bank of Communications vs. 159005 | Bank of Communications vs. Loctek Ergonomic Technology |
| National Silicon vs. Cultural Investment Holdings | National Silicon vs. Gome Telecom Equipment | National Silicon vs. Bus Online Co | National Silicon vs. Holitech Technology 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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