Correlation Between Bank of China and Guangzhou SiE
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By analyzing existing cross correlation between Bank of China and Guangzhou SiE Consulting, you can compare the effects of market volatilities on Bank of China and Guangzhou SiE 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 SiE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of China and Guangzhou SiE.
Diversification Opportunities for Bank of China and Guangzhou SiE
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and Guangzhou is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Bank of China and Guangzhou SiE Consulting in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou SiE Consulting 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 SiE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou SiE Consulting has no effect on the direction of Bank of China i.e., Bank of China and Guangzhou SiE go up and down completely randomly.
Pair Corralation between Bank of China and Guangzhou SiE
Assuming the 90 days trading horizon Bank of China is expected to generate 0.42 times more return on investment than Guangzhou SiE. However, Bank of China is 2.38 times less risky than Guangzhou SiE. It trades about 0.08 of its potential returns per unit of risk. Guangzhou SiE Consulting is currently generating about -0.22 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 | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of China vs. Guangzhou SiE Consulting
Performance |
| Timeline |
| Bank of China |
| Guangzhou SiE Consulting |
Bank of China and Guangzhou SiE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of China and Guangzhou SiE
The main advantage of trading using opposite Bank of China and Guangzhou SiE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of China position performs unexpectedly, Guangzhou SiE 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 SiE will offset losses from the drop in Guangzhou SiE'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 SiE vs. BYD Co Ltd | Guangzhou SiE vs. China Mobile Limited | Guangzhou SiE vs. Agricultural Bank of | Guangzhou SiE vs. Industrial and Commercial |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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