Correlation Between Bank of China and Rongan Property
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By analyzing existing cross correlation between Bank of China and Rongan Property Co, you can compare the effects of market volatilities on Bank of China and Rongan Property 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 Rongan Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of China and Rongan Property.
Diversification Opportunities for Bank of China and Rongan Property
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bank and Rongan is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Bank of China and Rongan Property Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rongan Property 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 Rongan Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rongan Property has no effect on the direction of Bank of China i.e., Bank of China and Rongan Property go up and down completely randomly.
Pair Corralation between Bank of China and Rongan Property
Assuming the 90 days trading horizon Bank of China is expected to generate 0.93 times more return on investment than Rongan Property. However, Bank of China is 1.07 times less risky than Rongan Property. It trades about -0.14 of its potential returns per unit of risk. Rongan Property Co is currently generating about -0.2 per unit of risk. If you would invest 553.00 in Bank of China on October 29, 2024 and sell it today you would lose (22.00) from holding Bank of China or give up 3.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of China vs. Rongan Property Co
Performance |
| Timeline |
| Bank of China |
| Rongan Property |
Bank of China and Rongan Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of China and Rongan Property
The main advantage of trading using opposite Bank of China and Rongan Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of China position performs unexpectedly, Rongan Property 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 Rongan Property will offset losses from the drop in Rongan Property's long position.| Bank of China vs. Gifore Agricultural Machinery | Bank of China vs. Shantui Construction Machinery | Bank of China vs. Qingdao Foods Co | Bank of China vs. Fujian Anjoy Foods |
| Rongan Property vs. Lianhe Chemical Technology | Rongan Property vs. Xinjiang Tianrun Dairy | Rongan Property vs. Miracll Chemicals Co | Rongan Property vs. Xiangpiaopiao Food 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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