Correlation Between Bank of China and Shenzhen SDG
Specify exactly 2 symbols:
By analyzing existing cross correlation between Bank of China and Shenzhen SDG Information, you can compare the effects of market volatilities on Bank of China and Shenzhen SDG 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 China with a short position of Shenzhen SDG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of China and Shenzhen SDG.
Diversification Opportunities for Bank of China and Shenzhen SDG
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bank and Shenzhen is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Bank of China and Shenzhen SDG Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen SDG Information and Bank of China 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 China are associated (or correlated) with Shenzhen SDG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen SDG Information has no effect on the direction of Bank of China i.e., Bank of China and Shenzhen SDG go up and down completely randomly.
Pair Corralation between Bank of China and Shenzhen SDG
Assuming the 90 days trading horizon Bank of China is expected to generate 0.38 times more return on investment than Shenzhen SDG. However, Bank of China is 2.63 times less risky than Shenzhen SDG. It trades about 0.09 of its potential returns per unit of risk. Shenzhen SDG Information is currently generating about 0.01 per unit of risk. If you would invest 293.00 in Bank of China on September 14, 2024 and sell it today you would earn a total of 227.00 from holding Bank of China or generate 77.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of China vs. Shenzhen SDG Information
Performance |
| Timeline |
| Bank of China |
| Shenzhen SDG Information |
Bank of China and Shenzhen SDG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of China and Shenzhen SDG
The main advantage of trading using opposite Bank of China and Shenzhen SDG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of China position performs unexpectedly, Shenzhen SDG 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 Shenzhen SDG will offset losses from the drop in Shenzhen SDG's long position.| Bank of China vs. Industrial Bank Co | Bank of China vs. GRG Banking Equipment | Bank of China vs. Central Plains Environment | Bank of China vs. Guosheng Financial Holding |
| Shenzhen SDG vs. Industrial and Commercial | Shenzhen SDG vs. China Construction Bank | Shenzhen SDG vs. Bank of China | Shenzhen SDG vs. Agricultural Bank of |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |