Correlation Between Bank of China and Zhejiang Yinlun
Specify exactly 2 symbols:
By analyzing existing cross correlation between Bank of China and Zhejiang Yinlun Machinery, you can compare the effects of market volatilities on Bank of China and Zhejiang Yinlun 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 Zhejiang Yinlun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of China and Zhejiang Yinlun.
Diversification Opportunities for Bank of China and Zhejiang Yinlun
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Bank and Zhejiang is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Bank of China and Zhejiang Yinlun Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Yinlun Machinery 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 Zhejiang Yinlun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Yinlun Machinery has no effect on the direction of Bank of China i.e., Bank of China and Zhejiang Yinlun go up and down completely randomly.
Pair Corralation between Bank of China and Zhejiang Yinlun
Assuming the 90 days trading horizon Bank of China is expected to generate 0.48 times more return on investment than Zhejiang Yinlun. However, Bank of China is 2.07 times less risky than Zhejiang Yinlun. It trades about 0.11 of its potential returns per unit of risk. Zhejiang Yinlun Machinery is currently generating about -0.15 per unit of risk. If you would invest 488.00 in Bank of China on August 29, 2024 and sell it today you would earn a total of 11.00 from holding Bank of China or generate 2.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of China vs. Zhejiang Yinlun Machinery
Performance |
| Timeline |
| Bank of China |
| Zhejiang Yinlun Machinery |
Bank of China and Zhejiang Yinlun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of China and Zhejiang Yinlun
The main advantage of trading using opposite Bank of China and Zhejiang Yinlun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of China position performs unexpectedly, Zhejiang Yinlun 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 Zhejiang Yinlun will offset losses from the drop in Zhejiang Yinlun's long position.| Bank of China vs. Dhc Software Co | Bank of China vs. Jinyu Bio Technology Co | Bank of China vs. BTG Hotels Group | Bank of China vs. Linewell Software Co |
| Zhejiang Yinlun vs. Agricultural Bank of | Zhejiang Yinlun vs. Industrial and Commercial | Zhejiang Yinlun vs. Bank of China | Zhejiang Yinlun vs. China Construction Bank |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |