Correlation Between Bank of China and Allwin Telecommunicatio
Specify exactly 2 symbols:
By analyzing existing cross correlation between Bank of China and Allwin Telecommunication Co, you can compare the effects of market volatilities on Bank of China and Allwin Telecommunicatio 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 Allwin Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of China and Allwin Telecommunicatio.
Diversification Opportunities for Bank of China and Allwin Telecommunicatio
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bank and Allwin is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Bank of China and Allwin Telecommunication Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allwin Telecommunicatio 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 Allwin Telecommunicatio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allwin Telecommunicatio has no effect on the direction of Bank of China i.e., Bank of China and Allwin Telecommunicatio go up and down completely randomly.
Pair Corralation between Bank of China and Allwin Telecommunicatio
Assuming the 90 days trading horizon Bank of China is expected to generate 0.38 times more return on investment than Allwin Telecommunicatio. However, Bank of China is 2.61 times less risky than Allwin Telecommunicatio. It trades about 0.09 of its potential returns per unit of risk. Allwin Telecommunication Co is currently generating about 0.01 per unit of risk. If you would invest 295.00 in Bank of China on September 13, 2024 and sell it today you would earn a total of 218.00 from holding Bank of China or generate 73.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of China vs. Allwin Telecommunication Co
Performance |
| Timeline |
| Bank of China |
| Allwin Telecommunicatio |
Bank of China and Allwin Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of China and Allwin Telecommunicatio
The main advantage of trading using opposite Bank of China and Allwin Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of China position performs unexpectedly, Allwin Telecommunicatio 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 Allwin Telecommunicatio will offset losses from the drop in Allwin Telecommunicatio's long position.| Bank of China vs. AUPU Home Style | Bank of China vs. HaiXin Foods Co | Bank of China vs. JuneYao Dairy Co | Bank of China vs. Zhengzhou Qianweiyangchu Food |
| Allwin Telecommunicatio vs. Industrial and Commercial | Allwin Telecommunicatio vs. China Construction Bank | Allwin Telecommunicatio vs. Bank of China | Allwin Telecommunicatio vs. Agricultural Bank of |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |