Correlation Between Bank of China and Shanghai Yaoji
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By analyzing existing cross correlation between Bank of China and Shanghai Yaoji Playing, you can compare the effects of market volatilities on Bank of China and Shanghai Yaoji 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 Shanghai Yaoji. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of China and Shanghai Yaoji.
Diversification Opportunities for Bank of China and Shanghai Yaoji
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Bank and Shanghai is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Bank of China and Shanghai Yaoji Playing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Yaoji Playing 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 Shanghai Yaoji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Yaoji Playing has no effect on the direction of Bank of China i.e., Bank of China and Shanghai Yaoji go up and down completely randomly.
Pair Corralation between Bank of China and Shanghai Yaoji
Assuming the 90 days trading horizon Bank of China is expected to generate 3.2 times less return on investment than Shanghai Yaoji. But when comparing it to its historical volatility, Bank of China is 2.45 times less risky than Shanghai Yaoji. It trades about 0.07 of its potential returns per unit of risk. Shanghai Yaoji Playing is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 2,240 in Shanghai Yaoji Playing on September 2, 2024 and sell it today you would earn a total of 938.00 from holding Shanghai Yaoji Playing or generate 41.88% 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. Shanghai Yaoji Playing
Performance |
| Timeline |
| Bank of China |
| Shanghai Yaoji Playing |
Bank of China and Shanghai Yaoji Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of China and Shanghai Yaoji
The main advantage of trading using opposite Bank of China and Shanghai Yaoji positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of China position performs unexpectedly, Shanghai Yaoji 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 Shanghai Yaoji will offset losses from the drop in Shanghai Yaoji's long position.| Bank of China vs. Marssenger Kitchenware Co | Bank of China vs. Thinkingdom Media Group | Bank of China vs. Hengdian Entertainment Co | Bank of China vs. Lander Sports Development |
| Shanghai Yaoji vs. Nanjing Putian Telecommunications | Shanghai Yaoji vs. Shenzhen Hifuture Electric | Shanghai Yaoji vs. Tianjin Realty Development | Shanghai Yaoji vs. Shenyang Huitian Thermal |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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