Correlation Between Bank of China and Yunnan Yuntou
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By analyzing existing cross correlation between Bank of China and Yunnan Yuntou Ecology, you can compare the effects of market volatilities on Bank of China and Yunnan Yuntou 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 Yunnan Yuntou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of China and Yunnan Yuntou.
Diversification Opportunities for Bank of China and Yunnan Yuntou
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bank and Yunnan is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Bank of China and Yunnan Yuntou Ecology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yunnan Yuntou Ecology 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 Yunnan Yuntou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yunnan Yuntou Ecology has no effect on the direction of Bank of China i.e., Bank of China and Yunnan Yuntou go up and down completely randomly.
Pair Corralation between Bank of China and Yunnan Yuntou
Assuming the 90 days trading horizon Bank of China is expected to generate 0.67 times more return on investment than Yunnan Yuntou. However, Bank of China is 1.5 times less risky than Yunnan Yuntou. It trades about 0.09 of its potential returns per unit of risk. Yunnan Yuntou Ecology is currently generating about -0.02 per unit of risk. If you would invest 293.00 in Bank of China on September 14, 2024 and sell it today you would earn a total of 227.00 from holding Bank of China or generate 77.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Bank of China vs. Yunnan Yuntou Ecology
Performance |
| Timeline |
| Bank of China |
| Yunnan Yuntou Ecology |
Bank of China and Yunnan Yuntou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of China and Yunnan Yuntou
The main advantage of trading using opposite Bank of China and Yunnan Yuntou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of China position performs unexpectedly, Yunnan Yuntou 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 Yunnan Yuntou will offset losses from the drop in Yunnan Yuntou's long position.| Bank of China vs. Industrial Bank Co | Bank of China vs. GRG Banking Equipment | Bank of China vs. Central Plains Environment | Bank of China vs. Guosheng Financial Holding |
| Yunnan Yuntou vs. Agricultural Bank of | Yunnan Yuntou vs. Industrial and Commercial | Yunnan Yuntou vs. Bank of China | Yunnan Yuntou vs. PetroChina Co Ltd |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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