Correlation Between Bank of China and Jiangsu Changfa
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By analyzing existing cross correlation between Bank of China and Jiangsu Changfa Refrigeration, you can compare the effects of market volatilities on Bank of China and Jiangsu Changfa 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 Jiangsu Changfa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of China and Jiangsu Changfa.
Diversification Opportunities for Bank of China and Jiangsu Changfa
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bank and Jiangsu is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Bank of China and Jiangsu Changfa Refrigeration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Changfa Refr 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 Jiangsu Changfa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Changfa Refr has no effect on the direction of Bank of China i.e., Bank of China and Jiangsu Changfa go up and down completely randomly.
Pair Corralation between Bank of China and Jiangsu Changfa
Assuming the 90 days trading horizon Bank of China is expected to generate 0.49 times more return on investment than Jiangsu Changfa. However, Bank of China is 2.02 times less risky than Jiangsu Changfa. It trades about 0.09 of its potential returns per unit of risk. Jiangsu Changfa Refrigeration is currently generating about 0.02 per unit of risk. If you would invest 296.00 in Bank of China on September 12, 2024 and sell it today you would earn a total of 225.00 from holding Bank of China or generate 76.01% 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. Jiangsu Changfa Refrigeration
Performance |
| Timeline |
| Bank of China |
| Jiangsu Changfa Refr |
Bank of China and Jiangsu Changfa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of China and Jiangsu Changfa
The main advantage of trading using opposite Bank of China and Jiangsu Changfa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of China position performs unexpectedly, Jiangsu Changfa 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 Jiangsu Changfa will offset losses from the drop in Jiangsu Changfa's long position.| Bank of China vs. Chenzhou Jingui Silver | Bank of China vs. Hangzhou Pinming Software | Bank of China vs. Shandong Mining Machinery | Bank of China vs. Tibet Huayu Mining |
| Jiangsu Changfa vs. Agricultural Bank of | Jiangsu Changfa vs. Industrial and Commercial | Jiangsu Changfa vs. Bank of China | Jiangsu Changfa 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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