Correlation Between Bank of China and Allmed Medical
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By analyzing existing cross correlation between Bank of China and Allmed Medical Products, you can compare the effects of market volatilities on Bank of China and Allmed Medical 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 Allmed Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of China and Allmed Medical.
Diversification Opportunities for Bank of China and Allmed Medical
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Bank and Allmed is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Bank of China and Allmed Medical Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allmed Medical Products 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 Allmed Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allmed Medical Products has no effect on the direction of Bank of China i.e., Bank of China and Allmed Medical go up and down completely randomly.
Pair Corralation between Bank of China and Allmed Medical
Assuming the 90 days trading horizon Bank of China is expected to generate 0.56 times more return on investment than Allmed Medical. However, Bank of China is 1.79 times less risky than Allmed Medical. It trades about 0.17 of its potential returns per unit of risk. Allmed Medical Products is currently generating about -0.02 per unit of risk. If you would invest 491.00 in Bank of China on October 26, 2024 and sell it today you would earn a total of 43.00 from holding Bank of China or generate 8.76% 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. Allmed Medical Products
Performance |
| Timeline |
| Bank of China |
| Allmed Medical Products |
Bank of China and Allmed Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of China and Allmed Medical
The main advantage of trading using opposite Bank of China and Allmed Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of China position performs unexpectedly, Allmed Medical 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 Allmed Medical will offset losses from the drop in Allmed Medical's long position.| Bank of China vs. Harbin Air Conditioning | Bank of China vs. Jinhui Liquor Co | Bank of China vs. MayAir Technology Co | Bank of China vs. Digiwin Software Co |
| Allmed Medical vs. Agricultural Bank of | Allmed Medical vs. Industrial and Commercial | Allmed Medical vs. Bank of China | Allmed Medical 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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