Correlation Between Bank of China and Shenzhen Sunlord
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By analyzing existing cross correlation between Bank of China and Shenzhen Sunlord Electronics, you can compare the effects of market volatilities on Bank of China and Shenzhen Sunlord 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 Shenzhen Sunlord. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of China and Shenzhen Sunlord.
Diversification Opportunities for Bank of China and Shenzhen Sunlord
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bank and Shenzhen is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Bank of China and Shenzhen Sunlord Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Sunlord Ele 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 Shenzhen Sunlord. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Sunlord Ele has no effect on the direction of Bank of China i.e., Bank of China and Shenzhen Sunlord go up and down completely randomly.
Pair Corralation between Bank of China and Shenzhen Sunlord
Assuming the 90 days trading horizon Bank of China is expected to generate 0.53 times more return on investment than Shenzhen Sunlord. However, Bank of China is 1.87 times less risky than Shenzhen Sunlord. It trades about 0.4 of its potential returns per unit of risk. Shenzhen Sunlord Electronics is currently generating about 0.09 per unit of risk. If you would invest 504.00 in Bank of China on September 28, 2024 and sell it today you would earn a total of 44.00 from holding Bank of China or generate 8.73% 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. Shenzhen Sunlord Electronics
Performance |
| Timeline |
| Bank of China |
| Shenzhen Sunlord Ele |
Bank of China and Shenzhen Sunlord Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of China and Shenzhen Sunlord
The main advantage of trading using opposite Bank of China and Shenzhen Sunlord positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of China position performs unexpectedly, Shenzhen Sunlord 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 Shenzhen Sunlord will offset losses from the drop in Shenzhen Sunlord's long position.| Bank of China vs. Anhui Huaheng Biotechnology | Bank of China vs. Maccura Biotechnology Co | Bank of China vs. Masterwork Machinery | Bank of China vs. Bloomage Biotechnology Corp |
| Shenzhen Sunlord vs. Industrial and Commercial | Shenzhen Sunlord vs. China Construction Bank | Shenzhen Sunlord vs. Agricultural Bank of | Shenzhen Sunlord 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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