Correlation Between Bank of China and Jiangxi Lianchuang
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By analyzing existing cross correlation between Bank of China and Jiangxi Lianchuang Opto electronic, you can compare the effects of market volatilities on Bank of China and Jiangxi Lianchuang 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 Jiangxi Lianchuang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of China and Jiangxi Lianchuang.
Diversification Opportunities for Bank of China and Jiangxi Lianchuang
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Bank and Jiangxi is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Bank of China and Jiangxi Lianchuang Opto electr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi Lianchuang Opto 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 Jiangxi Lianchuang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangxi Lianchuang Opto has no effect on the direction of Bank of China i.e., Bank of China and Jiangxi Lianchuang go up and down completely randomly.
Pair Corralation between Bank of China and Jiangxi Lianchuang
Assuming the 90 days trading horizon Bank of China is expected to generate 0.35 times more return on investment than Jiangxi Lianchuang. However, Bank of China is 2.86 times less risky than Jiangxi Lianchuang. It trades about 0.05 of its potential returns per unit of risk. Jiangxi Lianchuang Opto electronic is currently generating about -0.04 per unit of risk. If you would invest 536.00 in Bank of China on October 23, 2024 and sell it today you would earn a total of 5.00 from holding Bank of China or generate 0.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of China vs. Jiangxi Lianchuang Opto electr
Performance |
| Timeline |
| Bank of China |
| Jiangxi Lianchuang Opto |
Bank of China and Jiangxi Lianchuang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of China and Jiangxi Lianchuang
The main advantage of trading using opposite Bank of China and Jiangxi Lianchuang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of China position performs unexpectedly, Jiangxi Lianchuang 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 Jiangxi Lianchuang will offset losses from the drop in Jiangxi Lianchuang's long position.| Bank of China vs. Changchun BCHT Biotechnology | Bank of China vs. Jiugui Liquor Co | Bank of China vs. Zoje Resources Investment | Bank of China vs. Maccura Biotechnology Co |
| Jiangxi Lianchuang vs. Industrial and Commercial | Jiangxi Lianchuang vs. Agricultural Bank of | Jiangxi Lianchuang vs. China Construction Bank | Jiangxi Lianchuang vs. Bank of China |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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