Correlation Between Bank of China and 5I5j Holding
Specify exactly 2 symbols:
By analyzing existing cross correlation between Bank of China and 5I5j Holding Group, you can compare the effects of market volatilities on Bank of China and 5I5j Holding 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 5I5j Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of China and 5I5j Holding.
Diversification Opportunities for Bank of China and 5I5j Holding
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and 5I5j is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Bank of China and 5I5j Holding Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 5I5j Holding Group 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 5I5j Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 5I5j Holding Group has no effect on the direction of Bank of China i.e., Bank of China and 5I5j Holding go up and down completely randomly.
Pair Corralation between Bank of China and 5I5j Holding
Assuming the 90 days trading horizon Bank of China is expected to generate 0.38 times more return on investment than 5I5j Holding. However, Bank of China is 2.65 times less risky than 5I5j Holding. It trades about 0.09 of its potential returns per unit of risk. 5I5j Holding Group is currently generating about 0.02 per unit of risk. If you would invest 302.00 in Bank of China on November 7, 2024 and sell it today you would earn a total of 243.00 from holding Bank of China or generate 80.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Bank of China vs. 5I5j Holding Group
Performance |
| Timeline |
| Bank of China |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
| 5I5j Holding Group |
Bank of China and 5I5j Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of China and 5I5j Holding
The main advantage of trading using opposite Bank of China and 5I5j Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of China position performs unexpectedly, 5I5j Holding 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 5I5j Holding will offset losses from the drop in 5I5j Holding's long position.The idea behind Bank of China and 5I5j Holding Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |