Correlation Between Bank of China and Shenzhen Urban
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By analyzing existing cross correlation between Bank of China and Shenzhen Urban Transport, you can compare the effects of market volatilities on Bank of China and Shenzhen Urban 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 Shenzhen Urban. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of China and Shenzhen Urban.
Diversification Opportunities for Bank of China and Shenzhen Urban
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and Shenzhen is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Bank of China and Shenzhen Urban Transport in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Urban Transport 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 Shenzhen Urban. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Urban Transport has no effect on the direction of Bank of China i.e., Bank of China and Shenzhen Urban go up and down completely randomly.
Pair Corralation between Bank of China and Shenzhen Urban
Assuming the 90 days trading horizon Bank of China is expected to generate 0.4 times more return on investment than Shenzhen Urban. However, Bank of China is 2.52 times less risky than Shenzhen Urban. It trades about -0.14 of its potential returns per unit of risk. Shenzhen Urban Transport is currently generating about -0.23 per unit of risk. If you would invest 553.00 in Bank of China on October 29, 2024 and sell it today you would lose (22.00) from holding Bank of China or give up 3.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of China vs. Shenzhen Urban Transport
Performance |
| Timeline |
| Bank of China |
| Shenzhen Urban Transport |
Bank of China and Shenzhen Urban Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of China and Shenzhen Urban
The main advantage of trading using opposite Bank of China and Shenzhen Urban positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of China position performs unexpectedly, Shenzhen Urban 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 Shenzhen Urban will offset losses from the drop in Shenzhen Urban's long position.| Bank of China vs. Gifore Agricultural Machinery | Bank of China vs. Shantui Construction Machinery | Bank of China vs. Qingdao Foods Co | Bank of China vs. Fujian Anjoy Foods |
| Shenzhen Urban vs. Sanbo Hospital Management | Shenzhen Urban vs. Goodwill E Health | Shenzhen Urban vs. Chongqing Shunbo Aluminum | Shenzhen Urban vs. Healthcare Co |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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