Correlation Between Bank of China and Guangzhou Hangxin
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By analyzing existing cross correlation between Bank of China and Guangzhou Hangxin Aviation, you can compare the effects of market volatilities on Bank of China and Guangzhou Hangxin 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 Guangzhou Hangxin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of China and Guangzhou Hangxin.
Diversification Opportunities for Bank of China and Guangzhou Hangxin
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and Guangzhou is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Bank of China and Guangzhou Hangxin Aviation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Hangxin 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 Guangzhou Hangxin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Hangxin has no effect on the direction of Bank of China i.e., Bank of China and Guangzhou Hangxin go up and down completely randomly.
Pair Corralation between Bank of China and Guangzhou Hangxin
Assuming the 90 days trading horizon Bank of China is expected to generate 0.23 times more return on investment than Guangzhou Hangxin. However, Bank of China is 4.4 times less risky than Guangzhou Hangxin. It trades about 0.08 of its potential returns per unit of risk. Guangzhou Hangxin Aviation is currently generating about -0.02 per unit of risk. If you would invest 536.00 in Bank of China on October 22, 2024 and sell it today you would earn a total of 9.00 from holding Bank of China or generate 1.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of China vs. Guangzhou Hangxin Aviation
Performance |
| Timeline |
| Bank of China |
| Guangzhou Hangxin |
Bank of China and Guangzhou Hangxin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of China and Guangzhou Hangxin
The main advantage of trading using opposite Bank of China and Guangzhou Hangxin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of China position performs unexpectedly, Guangzhou Hangxin 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 Guangzhou Hangxin will offset losses from the drop in Guangzhou Hangxin's long position.| Bank of China vs. Beijing Sanyuan Foods | Bank of China vs. Jiangsu Financial Leasing | Bank of China vs. Qilu Bank Co | Bank of China vs. Peoples Insurance of |
| Guangzhou Hangxin vs. Shenzhen MYS Environmental | Guangzhou Hangxin vs. AVIC Fund Management | Guangzhou Hangxin vs. Haoxiangni Jujube Co | Guangzhou Hangxin vs. Shenzhen Bingchuan Network |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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