Correlation Between Bank of China and Ciwen Media
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By analyzing existing cross correlation between Bank of China and Ciwen Media Co, you can compare the effects of market volatilities on Bank of China and Ciwen Media 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 Ciwen Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of China and Ciwen Media.
Diversification Opportunities for Bank of China and Ciwen Media
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Bank and Ciwen is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Bank of China and Ciwen Media Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ciwen Media 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 Ciwen Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ciwen Media has no effect on the direction of Bank of China i.e., Bank of China and Ciwen Media go up and down completely randomly.
Pair Corralation between Bank of China and Ciwen Media
Assuming the 90 days trading horizon Bank of China is expected to under-perform the Ciwen Media. But the stock apears to be less risky and, when comparing its historical volatility, Bank of China is 4.15 times less risky than Ciwen Media. The stock trades about -0.03 of its potential returns per unit of risk. The Ciwen Media Co is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 643.00 in Ciwen Media Co on August 25, 2024 and sell it today you would earn a total of 31.00 from holding Ciwen Media Co or generate 4.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of China vs. Ciwen Media Co
Performance |
| Timeline |
| Bank of China |
| Ciwen Media |
Bank of China and Ciwen Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of China and Ciwen Media
The main advantage of trading using opposite Bank of China and Ciwen Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of China position performs unexpectedly, Ciwen Media 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 Ciwen Media will offset losses from the drop in Ciwen Media's long position.| Bank of China vs. Sinofibers Technology Co | Bank of China vs. Beijing Kaiwen Education | Bank of China vs. HanS Laser Tech | Bank of China vs. Tianshui Huatian Technology |
| Ciwen Media vs. Yindu Kitchen Equipment | Ciwen Media vs. Jinling Hotel Corp | Ciwen Media vs. Allwin Telecommunication Co | Ciwen Media vs. BTG Hotels Group |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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