Correlation Between Bank of China and Hangzhou Weiguang
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By analyzing existing cross correlation between Bank of China and Hangzhou Weiguang Electronic, you can compare the effects of market volatilities on Bank of China and Hangzhou Weiguang 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 Hangzhou Weiguang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of China and Hangzhou Weiguang.
Diversification Opportunities for Bank of China and Hangzhou Weiguang
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and Hangzhou is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bank of China and Hangzhou Weiguang Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Weiguang 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 Hangzhou Weiguang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Weiguang has no effect on the direction of Bank of China i.e., Bank of China and Hangzhou Weiguang go up and down completely randomly.
Pair Corralation between Bank of China and Hangzhou Weiguang
Assuming the 90 days trading horizon Bank of China is expected to generate 36.84 times less return on investment than Hangzhou Weiguang. But when comparing it to its historical volatility, Bank of China is 2.07 times less risky than Hangzhou Weiguang. It trades about 0.01 of its potential returns per unit of risk. Hangzhou Weiguang Electronic is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 1,817 in Hangzhou Weiguang Electronic on August 26, 2024 and sell it today you would earn a total of 419.00 from holding Hangzhou Weiguang Electronic or generate 23.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of China vs. Hangzhou Weiguang Electronic
Performance |
| Timeline |
| Bank of China |
| Hangzhou Weiguang |
Bank of China and Hangzhou Weiguang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of China and Hangzhou Weiguang
The main advantage of trading using opposite Bank of China and Hangzhou Weiguang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of China position performs unexpectedly, Hangzhou Weiguang 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 Hangzhou Weiguang will offset losses from the drop in Hangzhou Weiguang's long position.| Bank of China vs. Jiujiang Shanshui Technology | Bank of China vs. Dhc Software Co | Bank of China vs. Changchun UP Optotech | Bank of China vs. Shenzhen Topway Video |
| Hangzhou Weiguang vs. Industrial and Commercial | Hangzhou Weiguang vs. China Construction Bank | Hangzhou Weiguang vs. Agricultural Bank of | Hangzhou Weiguang vs. Bank of China |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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