Correlation Between Bank of China and Beijing SPC
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By analyzing existing cross correlation between Bank of China and Beijing SPC Environment, you can compare the effects of market volatilities on Bank of China and Beijing SPC 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 Beijing SPC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of China and Beijing SPC.
Diversification Opportunities for Bank of China and Beijing SPC
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Bank and Beijing is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Bank of China and Beijing SPC Environment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing SPC Environment 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 Beijing SPC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing SPC Environment has no effect on the direction of Bank of China i.e., Bank of China and Beijing SPC go up and down completely randomly.
Pair Corralation between Bank of China and Beijing SPC
Assuming the 90 days trading horizon Bank of China is expected to generate 2.52 times less return on investment than Beijing SPC. But when comparing it to its historical volatility, Bank of China is 1.92 times less risky than Beijing SPC. It trades about 0.13 of its potential returns per unit of risk. Beijing SPC Environment is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 417.00 in Beijing SPC Environment on September 4, 2024 and sell it today you would earn a total of 27.00 from holding Beijing SPC Environment or generate 6.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Bank of China vs. Beijing SPC Environment
Performance |
| Timeline |
| Bank of China |
| Beijing SPC Environment |
Bank of China and Beijing SPC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of China and Beijing SPC
The main advantage of trading using opposite Bank of China and Beijing SPC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of China position performs unexpectedly, Beijing SPC 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 Beijing SPC will offset losses from the drop in Beijing SPC's long position.| Bank of China vs. Servyou Software Group | Bank of China vs. Keli Sensing Technology | Bank of China vs. Linewell Software Co | Bank of China vs. Bus Online Co |
| Beijing SPC vs. Agricultural Bank of | Beijing SPC vs. Industrial and Commercial | Beijing SPC vs. Bank of China | Beijing SPC vs. China Construction 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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