Correlation Between Bank of China and Xiandai Investment
Specify exactly 2 symbols:
By analyzing existing cross correlation between Bank of China and Xiandai Investment Co, you can compare the effects of market volatilities on Bank of China and Xiandai Investment 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 Xiandai Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of China and Xiandai Investment.
Diversification Opportunities for Bank of China and Xiandai Investment
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bank and Xiandai is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Bank of China and Xiandai Investment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiandai Investment 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 Xiandai Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiandai Investment has no effect on the direction of Bank of China i.e., Bank of China and Xiandai Investment go up and down completely randomly.
Pair Corralation between Bank of China and Xiandai Investment
Assuming the 90 days trading horizon Bank of China is expected to generate 2.97 times less return on investment than Xiandai Investment. But when comparing it to its historical volatility, Bank of China is 2.95 times less risky than Xiandai Investment. It trades about 0.19 of its potential returns per unit of risk. Xiandai Investment Co is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 414.00 in Xiandai Investment Co on September 1, 2024 and sell it today you would earn a total of 48.00 from holding Xiandai Investment Co or generate 11.59% 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. Xiandai Investment Co
Performance |
| Timeline |
| Bank of China |
| Xiandai Investment |
Bank of China and Xiandai Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of China and Xiandai Investment
The main advantage of trading using opposite Bank of China and Xiandai Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of China position performs unexpectedly, Xiandai Investment 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 Xiandai Investment will offset losses from the drop in Xiandai Investment's long position.| Bank of China vs. China Minmetals Rare | Bank of China vs. China Eastern Airlines | Bank of China vs. Metro Investment Development | Bank of China vs. Cultural Investment Holdings |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |