Correlation Between Bank of Communications and Leaguer Shenzhen
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By analyzing existing cross correlation between Bank of Communications and Leaguer Shenzhen MicroElectronics, you can compare the effects of market volatilities on Bank of Communications and Leaguer Shenzhen 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 Leaguer Shenzhen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of Communications and Leaguer Shenzhen.
Diversification Opportunities for Bank of Communications and Leaguer Shenzhen
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Bank and Leaguer is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Bank of Communications and Leaguer Shenzhen MicroElectron in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leaguer Shenzhen Mic 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 Leaguer Shenzhen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Leaguer Shenzhen Mic has no effect on the direction of Bank of Communications i.e., Bank of Communications and Leaguer Shenzhen go up and down completely randomly.
Pair Corralation between Bank of Communications and Leaguer Shenzhen
Assuming the 90 days trading horizon Bank of Communications is expected to generate 0.4 times more return on investment than Leaguer Shenzhen. However, Bank of Communications is 2.48 times less risky than Leaguer Shenzhen. It trades about 0.09 of its potential returns per unit of risk. Leaguer Shenzhen MicroElectronics is currently generating about 0.02 per unit of risk. If you would invest 444.00 in Bank of Communications on September 4, 2024 and sell it today you would earn a total of 280.00 from holding Bank of Communications or generate 63.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of Communications vs. Leaguer Shenzhen MicroElectron
Performance |
| Timeline |
| Bank of Communications |
| Leaguer Shenzhen Mic |
Bank of Communications and Leaguer Shenzhen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of Communications and Leaguer Shenzhen
The main advantage of trading using opposite Bank of Communications and Leaguer Shenzhen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of Communications position performs unexpectedly, Leaguer Shenzhen 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 Leaguer Shenzhen will offset losses from the drop in Leaguer Shenzhen'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 |
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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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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