Correlation Between Bank of China and Tieling Newcity
Specify exactly 2 symbols:
By analyzing existing cross correlation between Bank of China and Tieling Newcity Investment, you can compare the effects of market volatilities on Bank of China and Tieling Newcity 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 Tieling Newcity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of China and Tieling Newcity.
Diversification Opportunities for Bank of China and Tieling Newcity
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bank and Tieling is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Bank of China and Tieling Newcity Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tieling Newcity Inve 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 Tieling Newcity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tieling Newcity Inve has no effect on the direction of Bank of China i.e., Bank of China and Tieling Newcity go up and down completely randomly.
Pair Corralation between Bank of China and Tieling Newcity
Assuming the 90 days trading horizon Bank of China is expected to generate 0.51 times more return on investment than Tieling Newcity. However, Bank of China is 1.98 times less risky than Tieling Newcity. It trades about 0.09 of its potential returns per unit of risk. Tieling Newcity Investment is currently generating about 0.02 per unit of risk. If you would invest 304.00 in Bank of China on October 15, 2024 and sell it today you would earn a total of 241.00 from holding Bank of China or generate 79.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Bank of China vs. Tieling Newcity Investment
Performance |
| Timeline |
| Bank of China |
| Tieling Newcity Inve |
Bank of China and Tieling Newcity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of China and Tieling Newcity
The main advantage of trading using opposite Bank of China and Tieling Newcity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of China position performs unexpectedly, Tieling Newcity 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 Tieling Newcity will offset losses from the drop in Tieling Newcity's long position.| Bank of China vs. CGN Nuclear Technology | Bank of China vs. Sinofibers Technology Co | Bank of China vs. Easyhome New Retail | Bank of China vs. Linewell Software Co |
| Tieling Newcity vs. JiShi Media Co | Tieling Newcity vs. Kontour Medical Technology | Tieling Newcity vs. Anhui Xinhua Media | Tieling Newcity vs. Xiangyu Medical 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |