Correlation Between Bank of China and Winner Medical
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By analyzing existing cross correlation between Bank of China and Winner Medical Co, you can compare the effects of market volatilities on Bank of China and Winner 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 Winner Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of China and Winner Medical.
Diversification Opportunities for Bank of China and Winner Medical
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Bank and Winner is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Bank of China and Winner Medical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Winner Medical 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 Winner Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Winner Medical has no effect on the direction of Bank of China i.e., Bank of China and Winner Medical go up and down completely randomly.
Pair Corralation between Bank of China and Winner Medical
Assuming the 90 days trading horizon Bank of China is expected to generate 0.54 times more return on investment than Winner Medical. However, Bank of China is 1.84 times less risky than Winner Medical. It trades about -0.1 of its potential returns per unit of risk. Winner Medical Co is currently generating about -0.06 per unit of risk. If you would invest 551.00 in Bank of China on October 26, 2024 and sell it today you would lose (17.00) from holding Bank of China or give up 3.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of China vs. Winner Medical Co
Performance |
| Timeline |
| Bank of China |
| Winner Medical |
Bank of China and Winner Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of China and Winner Medical
The main advantage of trading using opposite Bank of China and Winner Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of China position performs unexpectedly, Winner 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 Winner Medical will offset losses from the drop in Winner Medical's long position.| Bank of China vs. Harbin Air Conditioning | Bank of China vs. Jinhui Liquor Co | Bank of China vs. MayAir Technology Co | Bank of China vs. Digiwin Software Co |
| Winner Medical vs. Agricultural Bank of | Winner Medical vs. Industrial and Commercial | Winner Medical vs. Bank of China | Winner Medical vs. China Construction Bank |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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