Correlation Between Bank of China and Topsec Technologies
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By analyzing existing cross correlation between Bank of China and Topsec Technologies Group, you can compare the effects of market volatilities on Bank of China and Topsec Technologies 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 Topsec Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of China and Topsec Technologies.
Diversification Opportunities for Bank of China and Topsec Technologies
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bank and Topsec is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Bank of China and Topsec Technologies Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Topsec Technologies 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 Topsec Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Topsec Technologies has no effect on the direction of Bank of China i.e., Bank of China and Topsec Technologies go up and down completely randomly.
Pair Corralation between Bank of China and Topsec Technologies
Assuming the 90 days trading horizon Bank of China is expected to generate 8.48 times less return on investment than Topsec Technologies. But when comparing it to its historical volatility, Bank of China is 2.36 times less risky than Topsec Technologies. It trades about 0.06 of its potential returns per unit of risk. Topsec Technologies Group is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 630.00 in Topsec Technologies Group on November 2, 2024 and sell it today you would earn a total of 88.00 from holding Topsec Technologies Group or generate 13.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of China vs. Topsec Technologies Group
Performance |
| Timeline |
| Bank of China |
| Topsec Technologies |
Bank of China and Topsec Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of China and Topsec Technologies
The main advantage of trading using opposite Bank of China and Topsec Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of China position performs unexpectedly, Topsec Technologies 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 Topsec Technologies will offset losses from the drop in Topsec Technologies' long position.| Bank of China vs. Jilin Jlu Communication | Bank of China vs. Offshore Oil Engineering | Bank of China vs. Fiberhome Telecommunication Technologies | Bank of China vs. Chongqing Brewery Co |
| Topsec Technologies vs. Industrial and Commercial | Topsec Technologies vs. Agricultural Bank of | Topsec Technologies vs. China Construction Bank | Topsec Technologies 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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