Correlation Between Bank of China and Ningbo GQY
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By analyzing existing cross correlation between Bank of China and Ningbo GQY Video, you can compare the effects of market volatilities on Bank of China and Ningbo GQY 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 Ningbo GQY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of China and Ningbo GQY.
Diversification Opportunities for Bank of China and Ningbo GQY
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bank and Ningbo is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Bank of China and Ningbo GQY Video in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo GQY Video 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 Ningbo GQY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo GQY Video has no effect on the direction of Bank of China i.e., Bank of China and Ningbo GQY go up and down completely randomly.
Pair Corralation between Bank of China and Ningbo GQY
Assuming the 90 days trading horizon Bank of China is expected to generate 2.12 times less return on investment than Ningbo GQY. But when comparing it to its historical volatility, Bank of China is 3.33 times less risky than Ningbo GQY. It trades about 0.08 of its potential returns per unit of risk. Ningbo GQY Video is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 503.00 in Ningbo GQY Video on September 12, 2024 and sell it today you would earn a total of 299.00 from holding Ningbo GQY Video or generate 59.44% 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. Ningbo GQY Video
Performance |
| Timeline |
| Bank of China |
| Ningbo GQY Video |
Bank of China and Ningbo GQY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of China and Ningbo GQY
The main advantage of trading using opposite Bank of China and Ningbo GQY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of China position performs unexpectedly, Ningbo GQY 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 Ningbo GQY will offset losses from the drop in Ningbo GQY's long position.| Bank of China vs. Chenzhou Jingui Silver | Bank of China vs. Hangzhou Pinming Software | Bank of China vs. Shandong Mining Machinery | Bank of China vs. Tibet Huayu Mining |
| Ningbo GQY vs. Gansu Jiu Steel | Ningbo GQY vs. Shandong Mining Machinery | Ningbo GQY vs. Aba Chemicals Corp | Ningbo GQY vs. BlueFocus Communication Group |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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