Correlation Between Bank of China and TS Communications
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By analyzing existing cross correlation between Bank of China and TS Communications Co, you can compare the effects of market volatilities on Bank of China and TS Communications 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 TS Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of China and TS Communications.
Diversification Opportunities for Bank of China and TS Communications
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bank and 300570 is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Bank of China and TS Communications Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TS Communications 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 TS Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TS Communications has no effect on the direction of Bank of China i.e., Bank of China and TS Communications go up and down completely randomly.
Pair Corralation between Bank of China and TS Communications
Assuming the 90 days trading horizon Bank of China is expected to generate 0.27 times more return on investment than TS Communications. However, Bank of China is 3.77 times less risky than TS Communications. It trades about 0.38 of its potential returns per unit of risk. TS Communications Co is currently generating about -0.19 per unit of risk. If you would invest 481.00 in Bank of China on September 12, 2024 and sell it today you would earn a total of 40.00 from holding Bank of China or generate 8.32% 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. TS Communications Co
Performance |
| Timeline |
| Bank of China |
| TS Communications |
Bank of China and TS Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of China and TS Communications
The main advantage of trading using opposite Bank of China and TS Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of China position performs unexpectedly, TS Communications 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 TS Communications will offset losses from the drop in TS Communications' 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 |
| TS Communications vs. Gansu Jiu Steel | TS Communications vs. Shandong Mining Machinery | TS Communications vs. Aba Chemicals Corp | TS Communications 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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