Correlation Between Bank of China and Contec Medical
Specify exactly 2 symbols:
By analyzing existing cross correlation between Bank of China and Contec Medical Systems, you can compare the effects of market volatilities on Bank of China and Contec Medical 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 Contec Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of China and Contec Medical.
Diversification Opportunities for Bank of China and Contec Medical
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Bank and Contec is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Bank of China and Contec Medical Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Contec Medical Systems 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 Contec Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Contec Medical Systems has no effect on the direction of Bank of China i.e., Bank of China and Contec Medical go up and down completely randomly.
Pair Corralation between Bank of China and Contec Medical
Assuming the 90 days trading horizon Bank of China is expected to generate 0.39 times more return on investment than Contec Medical. However, Bank of China is 2.57 times less risky than Contec Medical. It trades about 0.11 of its potential returns per unit of risk. Contec Medical Systems is currently generating about -0.14 per unit of risk. If you would invest 488.00 in Bank of China on August 29, 2024 and sell it today you would earn a total of 11.00 from holding Bank of China or generate 2.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of China vs. Contec Medical Systems
Performance |
| Timeline |
| Bank of China |
| Contec Medical Systems |
Bank of China and Contec Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of China and Contec Medical
The main advantage of trading using opposite Bank of China and Contec Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of China position performs unexpectedly, Contec Medical 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 Contec Medical will offset losses from the drop in Contec Medical's long position.| Bank of China vs. Zhengzhou Qianweiyangchu Food | Bank of China vs. Guangdong Advertising Co | Bank of China vs. Linewell Software Co | Bank of China vs. Juewei Food Co |
| Contec Medical vs. Bank of China | Contec Medical vs. Kweichow Moutai Co | Contec Medical vs. PetroChina Co Ltd | Contec Medical vs. Bank of Communications |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |