Correlation Between Bank of China Limited and Songz Automobile
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By analyzing existing cross correlation between Bank of China and Songz Automobile Air, you can compare the effects of market volatilities on Bank of China Limited and Songz Automobile 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 Songz Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of China Limited and Songz Automobile.
Diversification Opportunities for Bank of China Limited and Songz Automobile
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and Songz is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Bank of China and Songz Automobile Air in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Songz Automobile Air 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 Songz Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Songz Automobile Air has no effect on the direction of Bank of China Limited i.e., Bank of China Limited and Songz Automobile go up and down completely randomly.
Pair Corralation between Bank of China Limited and Songz Automobile
Assuming the 90 days trading horizon Bank of China is expected to generate 0.6 times more return on investment than Songz Automobile. However, Bank of China is 1.67 times less risky than Songz Automobile. It trades about 0.09 of its potential returns per unit of risk. Songz Automobile Air is currently generating about 0.01 per unit of risk. If you would invest 314.00 in Bank of China on November 27, 2024 and sell it today you would earn a total of 227.00 from holding Bank of China or generate 72.29% 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. Songz Automobile Air
Performance |
| Timeline |
| Bank of China Limited |
| Songz Automobile Air |
Bank of China Limited and Songz Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of China Limited and Songz Automobile
The main advantage of trading using opposite Bank of China Limited and Songz Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of China Limited position performs unexpectedly, Songz Automobile 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 Songz Automobile will offset losses from the drop in Songz Automobile's 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 |
| Songz Automobile vs. Ningbo Tech Bank Co | Songz Automobile vs. Fsilon Furnishing and | Songz Automobile vs. Qijing Machinery | Songz Automobile vs. Postal Savings Bank |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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