Correlation Between Bank of China and Jinxiandai Information
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By analyzing existing cross correlation between Bank of China and Jinxiandai Information Industry, you can compare the effects of market volatilities on Bank of China and Jinxiandai Information 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 Jinxiandai Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of China and Jinxiandai Information.
Diversification Opportunities for Bank of China and Jinxiandai Information
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bank and Jinxiandai is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Bank of China and Jinxiandai Information Industr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinxiandai Information 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 Jinxiandai Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinxiandai Information has no effect on the direction of Bank of China i.e., Bank of China and Jinxiandai Information go up and down completely randomly.
Pair Corralation between Bank of China and Jinxiandai Information
Assuming the 90 days trading horizon Bank of China is expected to generate 0.37 times more return on investment than Jinxiandai Information. However, Bank of China is 2.68 times less risky than Jinxiandai Information. It trades about 0.09 of its potential returns per unit of risk. Jinxiandai Information Industry is currently generating about 0.02 per unit of risk. If you would invest 301.00 in Bank of China on November 5, 2024 and sell it today you would earn a total of 244.00 from holding Bank of China or generate 81.06% 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. Jinxiandai Information Industr
Performance |
| Timeline |
| Bank of China |
| Jinxiandai Information |
Bank of China and Jinxiandai Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of China and Jinxiandai Information
The main advantage of trading using opposite Bank of China and Jinxiandai Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of China position performs unexpectedly, Jinxiandai Information 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 Jinxiandai Information will offset losses from the drop in Jinxiandai Information's long position.| Bank of China vs. Rising Nonferrous Metals | Bank of China vs. ZYF Lopsking Aluminum | Bank of China vs. Ye Chiu Metal | Bank of China vs. Tongling Nonferrous Metals |
| Jinxiandai Information vs. Hygon Information Technology | Jinxiandai Information vs. BTG Hotels Group | Jinxiandai Information vs. Qilu Bank Co | Jinxiandai Information vs. Biwin Storage Technology |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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