Correlation Between Bank of China and Nuode Investment
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By analyzing existing cross correlation between Bank of China and Nuode Investment Co, you can compare the effects of market volatilities on Bank of China and Nuode Investment 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 Nuode Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of China and Nuode Investment.
Diversification Opportunities for Bank of China and Nuode Investment
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bank and Nuode is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Bank of China and Nuode Investment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuode Investment 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 Nuode Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuode Investment has no effect on the direction of Bank of China i.e., Bank of China and Nuode Investment go up and down completely randomly.
Pair Corralation between Bank of China and Nuode Investment
Assuming the 90 days trading horizon Bank of China is expected to generate 0.31 times more return on investment than Nuode Investment. However, Bank of China is 3.27 times less risky than Nuode Investment. It trades about 0.33 of its potential returns per unit of risk. Nuode Investment Co is currently generating about -0.02 per unit of risk. If you would invest 479.00 in Bank of China on September 13, 2024 and sell it today you would earn a total of 34.00 from holding Bank of China or generate 7.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of China vs. Nuode Investment Co
Performance |
| Timeline |
| Bank of China |
| Nuode Investment |
Bank of China and Nuode Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of China and Nuode Investment
The main advantage of trading using opposite Bank of China and Nuode Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of China position performs unexpectedly, Nuode Investment 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 Nuode Investment will offset losses from the drop in Nuode Investment's long position.| Bank of China vs. AUPU Home Style | Bank of China vs. HaiXin Foods Co | Bank of China vs. JuneYao Dairy Co | Bank of China vs. Zhengzhou Qianweiyangchu Food |
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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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