Correlation Between Bank of China and Grandblue Environment
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By analyzing existing cross correlation between Bank of China and Grandblue Environment Co, you can compare the effects of market volatilities on Bank of China and Grandblue Environment 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 Grandblue Environment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of China and Grandblue Environment.
Diversification Opportunities for Bank of China and Grandblue Environment
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bank and Grandblue is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Bank of China and Grandblue Environment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grandblue Environment 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 Grandblue Environment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grandblue Environment has no effect on the direction of Bank of China i.e., Bank of China and Grandblue Environment go up and down completely randomly.
Pair Corralation between Bank of China and Grandblue Environment
Assuming the 90 days trading horizon Bank of China is expected to under-perform the Grandblue Environment. But the stock apears to be less risky and, when comparing its historical volatility, Bank of China is 1.08 times less risky than Grandblue Environment. The stock trades about -0.14 of its potential returns per unit of risk. The Grandblue Environment Co is currently generating about -0.12 of returns per unit of risk over similar time horizon. If you would invest 2,335 in Grandblue Environment Co on October 29, 2024 and sell it today you would lose (85.00) from holding Grandblue Environment Co or give up 3.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of China vs. Grandblue Environment Co
Performance |
| Timeline |
| Bank of China |
| Grandblue Environment |
Bank of China and Grandblue Environment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of China and Grandblue Environment
The main advantage of trading using opposite Bank of China and Grandblue Environment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of China position performs unexpectedly, Grandblue Environment 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 Grandblue Environment will offset losses from the drop in Grandblue Environment'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 |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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