Correlation Between Bank of China and Yes Optoelectronics
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By analyzing existing cross correlation between Bank of China and Yes Optoelectronics Co, you can compare the effects of market volatilities on Bank of China and Yes Optoelectronics 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 Yes Optoelectronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of China and Yes Optoelectronics.
Diversification Opportunities for Bank of China and Yes Optoelectronics
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and Yes is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Bank of China and Yes Optoelectronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yes Optoelectronics 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 Yes Optoelectronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yes Optoelectronics has no effect on the direction of Bank of China i.e., Bank of China and Yes Optoelectronics go up and down completely randomly.
Pair Corralation between Bank of China and Yes Optoelectronics
Assuming the 90 days trading horizon Bank of China is expected to generate 0.24 times more return on investment than Yes Optoelectronics. However, Bank of China is 4.2 times less risky than Yes Optoelectronics. It trades about 0.09 of its potential returns per unit of risk. Yes Optoelectronics Co is currently generating about -0.02 per unit of risk. If you would invest 514.00 in Bank of China on October 14, 2024 and sell it today you would earn a total of 31.00 from holding Bank of China or generate 6.03% 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. Yes Optoelectronics Co
Performance |
| Timeline |
| Bank of China |
| Yes Optoelectronics |
Bank of China and Yes Optoelectronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of China and Yes Optoelectronics
The main advantage of trading using opposite Bank of China and Yes Optoelectronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of China position performs unexpectedly, Yes Optoelectronics 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 Yes Optoelectronics will offset losses from the drop in Yes Optoelectronics' long position.| Bank of China vs. XinJiang GuoTong Pipeline | Bank of China vs. Guangzhou Haozhi Industrial | Bank of China vs. Hengli Industrial Development | Bank of China vs. Pengxin International Mining |
| Yes Optoelectronics vs. Sihui Fuji Electronics | Yes Optoelectronics vs. Shengda Mining Co | Yes Optoelectronics vs. Hainan Mining Co | Yes Optoelectronics vs. Integrated Electronic Systems |
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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