Correlation Between Bank of China and Bosera CMSK
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By analyzing existing cross correlation between Bank of China and Bosera CMSK Industrial, you can compare the effects of market volatilities on Bank of China and Bosera CMSK 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 Bosera CMSK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of China and Bosera CMSK.
Diversification Opportunities for Bank of China and Bosera CMSK
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bank and Bosera is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Bank of China and Bosera CMSK Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bosera CMSK Industrial 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 Bosera CMSK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bosera CMSK Industrial has no effect on the direction of Bank of China i.e., Bank of China and Bosera CMSK go up and down completely randomly.
Pair Corralation between Bank of China and Bosera CMSK
Assuming the 90 days trading horizon Bank of China is expected to generate 1.25 times more return on investment than Bosera CMSK. However, Bank of China is 1.25 times more volatile than Bosera CMSK Industrial. It trades about 0.43 of its potential returns per unit of risk. Bosera CMSK Industrial is currently generating about 0.34 per unit of risk. If you would invest 503.00 in Bank of China on September 29, 2024 and sell it today you would earn a total of 45.00 from holding Bank of China or generate 8.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of China vs. Bosera CMSK Industrial
Performance |
| Timeline |
| Bank of China |
| Bosera CMSK Industrial |
Bank of China and Bosera CMSK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of China and Bosera CMSK
The main advantage of trading using opposite Bank of China and Bosera CMSK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of China position performs unexpectedly, Bosera CMSK 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 Bosera CMSK will offset losses from the drop in Bosera CMSK's long position.| Bank of China vs. Anhui Huaheng Biotechnology | Bank of China vs. Maccura Biotechnology Co | Bank of China vs. Masterwork Machinery | Bank of China vs. Bloomage Biotechnology Corp |
| Bosera CMSK vs. Industrial and Commercial | Bosera CMSK vs. China Construction Bank | Bosera CMSK vs. Agricultural Bank of | Bosera CMSK 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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