Correlation Between Bank of China and Sharetronic Data
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By analyzing existing cross correlation between Bank of China and Sharetronic Data Technology, you can compare the effects of market volatilities on Bank of China and Sharetronic Data 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 Sharetronic Data. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of China and Sharetronic Data.
Diversification Opportunities for Bank of China and Sharetronic Data
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bank and Sharetronic is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Bank of China and Sharetronic Data Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sharetronic Data Tec 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 Sharetronic Data. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sharetronic Data Tec has no effect on the direction of Bank of China i.e., Bank of China and Sharetronic Data go up and down completely randomly.
Pair Corralation between Bank of China and Sharetronic Data
Assuming the 90 days trading horizon Bank of China is expected to generate 1.4 times less return on investment than Sharetronic Data. But when comparing it to its historical volatility, Bank of China is 4.67 times less risky than Sharetronic Data. It trades about 0.38 of its potential returns per unit of risk. Sharetronic Data Technology is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 9,236 in Sharetronic Data Technology on September 12, 2024 and sell it today you would earn a total of 941.00 from holding Sharetronic Data Technology or generate 10.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Bank of China vs. Sharetronic Data Technology
Performance |
| Timeline |
| Bank of China |
| Sharetronic Data Tec |
Bank of China and Sharetronic Data Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of China and Sharetronic Data
The main advantage of trading using opposite Bank of China and Sharetronic Data positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of China position performs unexpectedly, Sharetronic Data 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 Sharetronic Data will offset losses from the drop in Sharetronic Data's 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 |
| Sharetronic Data vs. Lutian Machinery Co | Sharetronic Data vs. PetroChina Co Ltd | Sharetronic Data vs. Bank of China | Sharetronic Data vs. Gansu Jiu Steel |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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