Correlation Between Bank of China and Tianjin LVYIN
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By analyzing existing cross correlation between Bank of China and Tianjin LVYIN Landscape, you can compare the effects of market volatilities on Bank of China and Tianjin LVYIN 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 Tianjin LVYIN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of China and Tianjin LVYIN.
Diversification Opportunities for Bank of China and Tianjin LVYIN
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bank and Tianjin is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Bank of China and Tianjin LVYIN Landscape in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianjin LVYIN Landscape 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 Tianjin LVYIN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianjin LVYIN Landscape has no effect on the direction of Bank of China i.e., Bank of China and Tianjin LVYIN go up and down completely randomly.
Pair Corralation between Bank of China and Tianjin LVYIN
Assuming the 90 days trading horizon Bank of China is expected to generate 0.48 times more return on investment than Tianjin LVYIN. However, Bank of China is 2.1 times less risky than Tianjin LVYIN. It trades about 0.07 of its potential returns per unit of risk. Tianjin LVYIN Landscape is currently generating about 0.03 per unit of risk. If you would invest 466.00 in Bank of China on October 14, 2024 and sell it today you would earn a total of 79.00 from holding Bank of China or generate 16.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of China vs. Tianjin LVYIN Landscape
Performance |
| Timeline |
| Bank of China |
| Tianjin LVYIN Landscape |
Bank of China and Tianjin LVYIN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of China and Tianjin LVYIN
The main advantage of trading using opposite Bank of China and Tianjin LVYIN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of China position performs unexpectedly, Tianjin LVYIN 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 Tianjin LVYIN will offset losses from the drop in Tianjin LVYIN's long position.| Bank of China vs. Shaanxi Construction Machinery | Bank of China vs. Beijing Kingsoft Office | Bank of China vs. Allied Machinery Co | Bank of China vs. Lutian Machinery Co |
| Tianjin LVYIN vs. CSSC Offshore Marine | Tianjin LVYIN vs. Guangxi Wuzhou Communications | Tianjin LVYIN vs. State Grid InformationCommunication | Tianjin LVYIN vs. Bomesc Offshore Engineering |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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