Correlation Between Bank of China and Anhui Shiny
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By analyzing existing cross correlation between Bank of China and Anhui Shiny Electronic, you can compare the effects of market volatilities on Bank of China and Anhui Shiny 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 Anhui Shiny. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of China and Anhui Shiny.
Diversification Opportunities for Bank of China and Anhui Shiny
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bank and Anhui is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Bank of China and Anhui Shiny Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Shiny Electronic 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 Anhui Shiny. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Shiny Electronic has no effect on the direction of Bank of China i.e., Bank of China and Anhui Shiny go up and down completely randomly.
Pair Corralation between Bank of China and Anhui Shiny
Assuming the 90 days trading horizon Bank of China is expected to generate 0.36 times more return on investment than Anhui Shiny. However, Bank of China is 2.77 times less risky than Anhui Shiny. It trades about -0.04 of its potential returns per unit of risk. Anhui Shiny Electronic is currently generating about -0.02 per unit of risk. If you would invest 553.00 in Bank of China on October 30, 2024 and sell it today you would lose (8.00) from holding Bank of China or give up 1.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Bank of China vs. Anhui Shiny Electronic
Performance |
| Timeline |
| Bank of China |
| Anhui Shiny Electronic |
Bank of China and Anhui Shiny Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of China and Anhui Shiny
The main advantage of trading using opposite Bank of China and Anhui Shiny positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of China position performs unexpectedly, Anhui Shiny 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 Anhui Shiny will offset losses from the drop in Anhui Shiny's long position.| Bank of China vs. Chengtun Mining Group | Bank of China vs. Xiandai Investment Co | Bank of China vs. China Asset Management | Bank of China vs. Tibet Huayu Mining |
| Anhui Shiny vs. Lecron Energy Saving | Anhui Shiny vs. Panda Financial Holding | Anhui Shiny vs. Peoples Insurance of | Anhui Shiny vs. Everdisplay Optronics Shanghai |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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