Correlation Between Bank of China and Guangzhou KingTeller
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By analyzing existing cross correlation between Bank of China and Guangzhou KingTeller Technology, you can compare the effects of market volatilities on Bank of China and Guangzhou KingTeller 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 Guangzhou KingTeller. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of China and Guangzhou KingTeller.
Diversification Opportunities for Bank of China and Guangzhou KingTeller
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Bank and Guangzhou is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Bank of China and Guangzhou KingTeller Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou KingTeller 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 Guangzhou KingTeller. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou KingTeller has no effect on the direction of Bank of China i.e., Bank of China and Guangzhou KingTeller go up and down completely randomly.
Pair Corralation between Bank of China and Guangzhou KingTeller
Assuming the 90 days trading horizon Bank of China is expected to under-perform the Guangzhou KingTeller. But the stock apears to be less risky and, when comparing its historical volatility, Bank of China is 3.17 times less risky than Guangzhou KingTeller. The stock trades about -0.1 of its potential returns per unit of risk. The Guangzhou KingTeller Technology is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 471.00 in Guangzhou KingTeller Technology on October 26, 2024 and sell it today you would lose (3.00) from holding Guangzhou KingTeller Technology or give up 0.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of China vs. Guangzhou KingTeller Technolog
Performance |
| Timeline |
| Bank of China |
| Guangzhou KingTeller |
Bank of China and Guangzhou KingTeller Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of China and Guangzhou KingTeller
The main advantage of trading using opposite Bank of China and Guangzhou KingTeller positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of China position performs unexpectedly, Guangzhou KingTeller 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 Guangzhou KingTeller will offset losses from the drop in Guangzhou KingTeller's long position.| Bank of China vs. Harbin Air Conditioning | Bank of China vs. Jinhui Liquor Co | Bank of China vs. MayAir Technology Co | Bank of China vs. Digiwin Software Co |
| Guangzhou KingTeller vs. Agricultural Bank of | Guangzhou KingTeller vs. Industrial and Commercial | Guangzhou KingTeller vs. Bank of China | Guangzhou KingTeller 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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