Correlation Between Bank of China and Soyea Technology
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By analyzing existing cross correlation between Bank of China and Soyea Technology Co, you can compare the effects of market volatilities on Bank of China and Soyea Technology 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 Soyea Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of China and Soyea Technology.
Diversification Opportunities for Bank of China and Soyea Technology
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Bank and Soyea is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Bank of China and Soyea Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Soyea Technology 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 Soyea Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Soyea Technology has no effect on the direction of Bank of China i.e., Bank of China and Soyea Technology go up and down completely randomly.
Pair Corralation between Bank of China and Soyea Technology
Assuming the 90 days trading horizon Bank of China is expected to generate 0.53 times more return on investment than Soyea Technology. However, Bank of China is 1.89 times less risky than Soyea Technology. It trades about 0.06 of its potential returns per unit of risk. Soyea Technology Co is currently generating about -0.11 per unit of risk. If you would invest 537.00 in Bank of China on November 3, 2024 and sell it today you would earn a total of 8.00 from holding Bank of China or generate 1.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of China vs. Soyea Technology Co
Performance |
| Timeline |
| Bank of China |
| Soyea Technology |
Bank of China and Soyea Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of China and Soyea Technology
The main advantage of trading using opposite Bank of China and Soyea Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of China position performs unexpectedly, Soyea Technology 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 Soyea Technology will offset losses from the drop in Soyea Technology's long position.| Bank of China vs. Zoje Resources Investment | Bank of China vs. Chengdu Xingrong Investment | Bank of China vs. Zbit Semiconductor A | Bank of China vs. Southchip Semiconductor Technology |
| Soyea Technology vs. Industrial and Commercial | Soyea Technology vs. Agricultural Bank of | Soyea Technology vs. China Construction Bank | Soyea Technology vs. Bank of China |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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