Correlation Between Bank of China and Shenzhen Dynanonic
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By analyzing existing cross correlation between Bank of China and Shenzhen Dynanonic Co, you can compare the effects of market volatilities on Bank of China and Shenzhen Dynanonic 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 Shenzhen Dynanonic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of China and Shenzhen Dynanonic.
Diversification Opportunities for Bank of China and Shenzhen Dynanonic
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bank and Shenzhen is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Bank of China and Shenzhen Dynanonic Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Dynanonic 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 Shenzhen Dynanonic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Dynanonic has no effect on the direction of Bank of China i.e., Bank of China and Shenzhen Dynanonic go up and down completely randomly.
Pair Corralation between Bank of China and Shenzhen Dynanonic
Assuming the 90 days trading horizon Bank of China is expected to generate 0.34 times more return on investment than Shenzhen Dynanonic. However, Bank of China is 2.95 times less risky than Shenzhen Dynanonic. It trades about 0.09 of its potential returns per unit of risk. Shenzhen Dynanonic Co is currently generating about -0.06 per unit of risk. If you would invest 304.00 in Bank of China on October 16, 2024 and sell it today you would earn a total of 231.00 from holding Bank of China or generate 75.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of China vs. Shenzhen Dynanonic Co
Performance |
| Timeline |
| Bank of China |
| Shenzhen Dynanonic |
Bank of China and Shenzhen Dynanonic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of China and Shenzhen Dynanonic
The main advantage of trading using opposite Bank of China and Shenzhen Dynanonic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of China position performs unexpectedly, Shenzhen Dynanonic 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 Shenzhen Dynanonic will offset losses from the drop in Shenzhen Dynanonic's long position.| Bank of China vs. CGN Nuclear Technology | Bank of China vs. Sinofibers Technology Co | Bank of China vs. Easyhome New Retail | Bank of China vs. Linewell Software Co |
| Shenzhen Dynanonic vs. Jinling Hotel Corp | Shenzhen Dynanonic vs. Innovative Medical Management | Shenzhen Dynanonic vs. Tinavi Medical Technologies | Shenzhen Dynanonic vs. Hubei Geoway Investment |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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