Correlation Between Bank of China Limited and Dalian Zeus
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By analyzing existing cross correlation between Bank of China and Dalian Zeus Entertainment, you can compare the effects of market volatilities on Bank of China Limited and Dalian Zeus 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 Limited with a short position of Dalian Zeus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of China Limited and Dalian Zeus.
Diversification Opportunities for Bank of China Limited and Dalian Zeus
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bank and Dalian is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Bank of China and Dalian Zeus Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dalian Zeus Entertainment and Bank of China Limited 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 Dalian Zeus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dalian Zeus Entertainment has no effect on the direction of Bank of China Limited i.e., Bank of China Limited and Dalian Zeus go up and down completely randomly.
Pair Corralation between Bank of China Limited and Dalian Zeus
Assuming the 90 days trading horizon Bank of China is expected to under-perform the Dalian Zeus. But the stock apears to be less risky and, when comparing its historical volatility, Bank of China is 4.09 times less risky than Dalian Zeus. The stock trades about -0.04 of its potential returns per unit of risk. The Dalian Zeus Entertainment is currently generating about 0.35 of returns per unit of risk over similar time horizon. If you would invest 610.00 in Dalian Zeus Entertainment on November 27, 2024 and sell it today you would earn a total of 160.00 from holding Dalian Zeus Entertainment or generate 26.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of China vs. Dalian Zeus Entertainment
Performance |
| Timeline |
| Bank of China Limited |
| Dalian Zeus Entertainment |
Bank of China Limited and Dalian Zeus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of China Limited and Dalian Zeus
The main advantage of trading using opposite Bank of China Limited and Dalian Zeus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of China Limited position performs unexpectedly, Dalian Zeus 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 Dalian Zeus will offset losses from the drop in Dalian Zeus' long position.| Bank of China Limited vs. China World Trade | Bank of China Limited vs. Henan Shuanghui Investment | Bank of China Limited vs. Huawen Media Investment | Bank of China Limited vs. Zhongrun Resources Investment |
| Dalian Zeus vs. Caihong Display Devices | Dalian Zeus vs. Guangzhou Huayan Precision | Dalian Zeus vs. Bohai Leasing Co | Dalian Zeus vs. Zhejiang Yinlun Machinery |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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