Correlation Between Bank of China and Lootom Telcovideo
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By analyzing existing cross correlation between Bank of China and Lootom Telcovideo Network, you can compare the effects of market volatilities on Bank of China and Lootom Telcovideo 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 Lootom Telcovideo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of China and Lootom Telcovideo.
Diversification Opportunities for Bank of China and Lootom Telcovideo
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bank and Lootom is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Bank of China and Lootom Telcovideo Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lootom Telcovideo Network 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 Lootom Telcovideo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lootom Telcovideo Network has no effect on the direction of Bank of China i.e., Bank of China and Lootom Telcovideo go up and down completely randomly.
Pair Corralation between Bank of China and Lootom Telcovideo
Assuming the 90 days trading horizon Bank of China is expected to generate 0.32 times more return on investment than Lootom Telcovideo. However, Bank of China is 3.14 times less risky than Lootom Telcovideo. It trades about 0.17 of its potential returns per unit of risk. Lootom Telcovideo Network is currently generating about 0.03 per unit of risk. If you would invest 523.00 in Bank of China on October 20, 2024 and sell it today you would earn a total of 22.00 from holding Bank of China or generate 4.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of China vs. Lootom Telcovideo Network
Performance |
| Timeline |
| Bank of China |
| Lootom Telcovideo Network |
Bank of China and Lootom Telcovideo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of China and Lootom Telcovideo
The main advantage of trading using opposite Bank of China and Lootom Telcovideo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of China position performs unexpectedly, Lootom Telcovideo 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 Lootom Telcovideo will offset losses from the drop in Lootom Telcovideo's long position.| Bank of China vs. Shaanxi Construction Machinery | Bank of China vs. Digital China Information | Bank of China vs. Longmaster Information Tech | Bank of China vs. Ningbo Construction Co |
| Lootom Telcovideo vs. Beijing Mainstreets Investment | Lootom Telcovideo vs. Jinling Hotel Corp | Lootom Telcovideo vs. Zhejiang Construction Investment | Lootom Telcovideo vs. Bomesc Offshore Engineering |
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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