Correlation Between Bank of China and Lander Sports
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By analyzing existing cross correlation between Bank of China and Lander Sports Development, you can compare the effects of market volatilities on Bank of China and Lander Sports 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 Lander Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of China and Lander Sports.
Diversification Opportunities for Bank of China and Lander Sports
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Bank and Lander is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Bank of China and Lander Sports Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lander Sports Development 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 Lander Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lander Sports Development has no effect on the direction of Bank of China i.e., Bank of China and Lander Sports go up and down completely randomly.
Pair Corralation between Bank of China and Lander Sports
Assuming the 90 days trading horizon Bank of China is expected to generate 0.28 times more return on investment than Lander Sports. However, Bank of China is 3.54 times less risky than Lander Sports. It trades about 0.04 of its potential returns per unit of risk. Lander Sports Development is currently generating about -0.13 per unit of risk. If you would invest 488.00 in Bank of China on August 27, 2024 and sell it today you would earn a total of 3.00 from holding Bank of China or generate 0.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of China vs. Lander Sports Development
Performance |
| Timeline |
| Bank of China |
| Lander Sports Development |
Bank of China and Lander Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of China and Lander Sports
The main advantage of trading using opposite Bank of China and Lander Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of China position performs unexpectedly, Lander Sports 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 Lander Sports will offset losses from the drop in Lander Sports' long position.| Bank of China vs. Harbin Air Conditioning | Bank of China vs. Heilongjiang Transport Development | Bank of China vs. Impulse Qingdao Health | Bank of China vs. Yunnan Jianzhijia Health Chain |
| Lander Sports vs. Industrial and Commercial | Lander Sports vs. China Construction Bank | Lander Sports vs. Bank of China | Lander Sports 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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