Correlation Between Bank of China and COL Digital
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By analyzing existing cross correlation between Bank of China and COL Digital Publishing, you can compare the effects of market volatilities on Bank of China and COL Digital 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 COL Digital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of China and COL Digital.
Diversification Opportunities for Bank of China and COL Digital
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Bank and COL is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Bank of China and COL Digital Publishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COL Digital Publishing 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 COL Digital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COL Digital Publishing has no effect on the direction of Bank of China i.e., Bank of China and COL Digital go up and down completely randomly.
Pair Corralation between Bank of China and COL Digital
Assuming the 90 days trading horizon Bank of China is expected to generate 0.2 times more return on investment than COL Digital. However, Bank of China is 4.98 times less risky than COL Digital. It trades about -0.03 of its potential returns per unit of risk. COL Digital Publishing is currently generating about -0.1 per unit of risk. If you would invest 495.00 in Bank of China on August 25, 2024 and sell it today you would lose (4.00) from holding Bank of China or give up 0.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of China vs. COL Digital Publishing
Performance |
| Timeline |
| Bank of China |
| COL Digital Publishing |
Bank of China and COL Digital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of China and COL Digital
The main advantage of trading using opposite Bank of China and COL Digital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of China position performs unexpectedly, COL Digital 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 COL Digital will offset losses from the drop in COL Digital's long position.| Bank of China vs. Sinofibers Technology Co | Bank of China vs. Beijing Kaiwen Education | Bank of China vs. HanS Laser Tech | Bank of China vs. Tianshui Huatian Technology |
| COL Digital vs. Industrial and Commercial | COL Digital vs. Agricultural Bank of | COL Digital vs. China Construction Bank | COL Digital 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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