Correlation Between Bank of China and Shenzhen Zhongzhuang
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By analyzing existing cross correlation between Bank of China and Shenzhen Zhongzhuang Construction, you can compare the effects of market volatilities on Bank of China and Shenzhen Zhongzhuang 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 Shenzhen Zhongzhuang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of China and Shenzhen Zhongzhuang.
Diversification Opportunities for Bank of China and Shenzhen Zhongzhuang
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Bank and Shenzhen is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Bank of China and Shenzhen Zhongzhuang Construct in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Zhongzhuang 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 Shenzhen Zhongzhuang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Zhongzhuang has no effect on the direction of Bank of China i.e., Bank of China and Shenzhen Zhongzhuang go up and down completely randomly.
Pair Corralation between Bank of China and Shenzhen Zhongzhuang
Assuming the 90 days trading horizon Bank of China is expected to generate 0.44 times more return on investment than Shenzhen Zhongzhuang. However, Bank of China is 2.29 times less risky than Shenzhen Zhongzhuang. It trades about 0.09 of its potential returns per unit of risk. Shenzhen Zhongzhuang Construction is currently generating about 0.0 per unit of risk. If you would invest 301.00 in Bank of China on November 5, 2024 and sell it today you would earn a total of 244.00 from holding Bank of China or generate 81.06% 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. Shenzhen Zhongzhuang Construct
Performance |
| Timeline |
| Bank of China |
| Shenzhen Zhongzhuang |
Bank of China and Shenzhen Zhongzhuang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of China and Shenzhen Zhongzhuang
The main advantage of trading using opposite Bank of China and Shenzhen Zhongzhuang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of China position performs unexpectedly, Shenzhen Zhongzhuang 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 Shenzhen Zhongzhuang will offset losses from the drop in Shenzhen Zhongzhuang's long position.| Bank of China vs. Rising Nonferrous Metals | Bank of China vs. ZYF Lopsking Aluminum | Bank of China vs. Ye Chiu Metal | Bank of China vs. Tongling Nonferrous Metals |
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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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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