Correlation Between Anhui Xinhua and Bank of China
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By analyzing existing cross correlation between Anhui Xinhua Media and Bank of China, you can compare the effects of market volatilities on Anhui Xinhua and Bank of China 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 Anhui Xinhua with a short position of Bank of China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Xinhua and Bank of China.
Diversification Opportunities for Anhui Xinhua and Bank of China
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Anhui and Bank is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Xinhua Media and Bank of China in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of China and Anhui Xinhua 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 Anhui Xinhua Media are associated (or correlated) with Bank of China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of China has no effect on the direction of Anhui Xinhua i.e., Anhui Xinhua and Bank of China go up and down completely randomly.
Pair Corralation between Anhui Xinhua and Bank of China
Assuming the 90 days trading horizon Anhui Xinhua Media is expected to under-perform the Bank of China. In addition to that, Anhui Xinhua is 1.71 times more volatile than Bank of China. It trades about -0.3 of its total potential returns per unit of risk. Bank of China is currently generating about 0.15 per unit of volatility. If you would invest 526.00 in Bank of China on October 17, 2024 and sell it today you would earn a total of 19.00 from holding Bank of China or generate 3.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Xinhua Media vs. Bank of China
Performance |
| Timeline |
| Anhui Xinhua Media |
| Bank of China |
Anhui Xinhua and Bank of China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Xinhua and Bank of China
The main advantage of trading using opposite Anhui Xinhua and Bank of China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Xinhua position performs unexpectedly, Bank of China 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 Bank of China will offset losses from the drop in Bank of China's long position.| Anhui Xinhua vs. Quectel Wireless Solutions | Anhui Xinhua vs. Fiberhome Telecommunication Technologies | Anhui Xinhua vs. CareRay Digital Medical | Anhui Xinhua vs. Eyebright Medical Technology |
| Bank of China vs. Ningbo Fangzheng Automobile | Bank of China vs. Anhui Xinhua Media | Bank of China vs. Shuhua Sports Co | Bank of China vs. Heilongjiang Publishing Media |
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 Stocks Directory module to find actively traded stocks across global markets.
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