Correlation Between Bank of China and Qingdao Hi
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By analyzing existing cross correlation between Bank of China and Qingdao Hi Tech Moulds, you can compare the effects of market volatilities on Bank of China and Qingdao Hi 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 Qingdao Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of China and Qingdao Hi.
Diversification Opportunities for Bank of China and Qingdao Hi
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bank and Qingdao is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Bank of China and Qingdao Hi Tech Moulds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qingdao Hi Tech 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 Qingdao Hi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qingdao Hi Tech has no effect on the direction of Bank of China i.e., Bank of China and Qingdao Hi go up and down completely randomly.
Pair Corralation between Bank of China and Qingdao Hi
Assuming the 90 days trading horizon Bank of China is expected to generate 0.27 times more return on investment than Qingdao Hi. However, Bank of China is 3.64 times less risky than Qingdao Hi. It trades about 0.09 of its potential returns per unit of risk. Qingdao Hi Tech Moulds is currently generating about 0.01 per unit of risk. If you would invest 373.00 in Bank of China on September 12, 2024 and sell it today you would earn a total of 148.00 from holding Bank of China or generate 39.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of China vs. Qingdao Hi Tech Moulds
Performance |
| Timeline |
| Bank of China |
| Qingdao Hi Tech |
Bank of China and Qingdao Hi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of China and Qingdao Hi
The main advantage of trading using opposite Bank of China and Qingdao Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of China position performs unexpectedly, Qingdao Hi 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 Qingdao Hi will offset losses from the drop in Qingdao Hi'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 |
| Qingdao Hi vs. Agricultural Bank of | Qingdao Hi vs. Industrial and Commercial | Qingdao Hi vs. Bank of China | Qingdao Hi vs. PetroChina Co Ltd |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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