Correlation Between Bank of China and Beijing Tiantan
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By analyzing existing cross correlation between Bank of China and Beijing Tiantan Biological, you can compare the effects of market volatilities on Bank of China and Beijing Tiantan 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 Beijing Tiantan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of China and Beijing Tiantan.
Diversification Opportunities for Bank of China and Beijing Tiantan
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and Beijing is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Bank of China and Beijing Tiantan Biological in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Tiantan Biol 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 Beijing Tiantan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Tiantan Biol has no effect on the direction of Bank of China i.e., Bank of China and Beijing Tiantan go up and down completely randomly.
Pair Corralation between Bank of China and Beijing Tiantan
Assuming the 90 days trading horizon Bank of China is expected to generate 0.88 times more return on investment than Beijing Tiantan. However, Bank of China is 1.14 times less risky than Beijing Tiantan. It trades about 0.31 of its potential returns per unit of risk. Beijing Tiantan Biological is currently generating about -0.2 per unit of risk. If you would invest 484.00 in Bank of China on September 15, 2024 and sell it today you would earn a total of 34.00 from holding Bank of China or generate 7.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of China vs. Beijing Tiantan Biological
Performance |
| Timeline |
| Bank of China |
| Beijing Tiantan Biol |
Bank of China and Beijing Tiantan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of China and Beijing Tiantan
The main advantage of trading using opposite Bank of China and Beijing Tiantan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of China position performs unexpectedly, Beijing Tiantan 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 Beijing Tiantan will offset losses from the drop in Beijing Tiantan's long position.| Bank of China vs. Chenzhou Jingui Silver | Bank of China vs. Zhejiang Yayi Metal | Bank of China vs. Gansu Yasheng Industrial | Bank of China vs. Hainan Mining Co |
| Beijing Tiantan vs. Industrial and Commercial | Beijing Tiantan vs. China Construction Bank | Beijing Tiantan vs. Bank of China | Beijing Tiantan vs. Agricultural Bank of |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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