Correlation Between Bank of China and Anhui Gujing
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By analyzing existing cross correlation between Bank of China and Anhui Gujing Distillery, you can compare the effects of market volatilities on Bank of China and Anhui Gujing 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 Anhui Gujing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of China and Anhui Gujing.
Diversification Opportunities for Bank of China and Anhui Gujing
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bank and Anhui is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Bank of China and Anhui Gujing Distillery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Gujing Distillery 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 Anhui Gujing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Gujing Distillery has no effect on the direction of Bank of China i.e., Bank of China and Anhui Gujing go up and down completely randomly.
Pair Corralation between Bank of China and Anhui Gujing
Assuming the 90 days trading horizon Bank of China is expected to generate 0.51 times more return on investment than Anhui Gujing. However, Bank of China is 1.97 times less risky than Anhui Gujing. It trades about 0.08 of its potential returns per unit of risk. Anhui Gujing Distillery is currently generating about -0.02 per unit of risk. If you would invest 399.00 in Bank of China on September 2, 2024 and sell it today you would earn a total of 102.00 from holding Bank of China or generate 25.56% 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. Anhui Gujing Distillery
Performance |
| Timeline |
| Bank of China |
| Anhui Gujing Distillery |
Bank of China and Anhui Gujing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of China and Anhui Gujing
The main advantage of trading using opposite Bank of China and Anhui Gujing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of China position performs unexpectedly, Anhui Gujing 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 Anhui Gujing will offset losses from the drop in Anhui Gujing's long position.| Bank of China vs. Marssenger Kitchenware Co | Bank of China vs. Thinkingdom Media Group | Bank of China vs. Hengdian Entertainment Co | Bank of China vs. Lander Sports Development |
| Anhui Gujing vs. China Petroleum Chemical | Anhui Gujing vs. PetroChina Co Ltd | Anhui Gujing vs. China State Construction | Anhui Gujing vs. China Railway Group |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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