Correlation Between Bank of China and Tonghua Grape
Specify exactly 2 symbols:
By analyzing existing cross correlation between Bank of China and Tonghua Grape Wine, you can compare the effects of market volatilities on Bank of China and Tonghua Grape 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 Tonghua Grape. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of China and Tonghua Grape.
Diversification Opportunities for Bank of China and Tonghua Grape
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Bank and Tonghua is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Bank of China and Tonghua Grape Wine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tonghua Grape Wine 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 Tonghua Grape. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tonghua Grape Wine has no effect on the direction of Bank of China i.e., Bank of China and Tonghua Grape go up and down completely randomly.
Pair Corralation between Bank of China and Tonghua Grape
Assuming the 90 days trading horizon Bank of China is expected to generate 1.67 times less return on investment than Tonghua Grape. But when comparing it to its historical volatility, Bank of China is 1.61 times less risky than Tonghua Grape. It trades about 0.07 of its potential returns per unit of risk. Tonghua Grape Wine is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 255.00 in Tonghua Grape Wine on September 5, 2024 and sell it today you would earn a total of 51.00 from holding Tonghua Grape Wine or generate 20.0% 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. Tonghua Grape Wine
Performance |
| Timeline |
| Bank of China |
| Tonghua Grape Wine |
Bank of China and Tonghua Grape Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of China and Tonghua Grape
The main advantage of trading using opposite Bank of China and Tonghua Grape positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of China position performs unexpectedly, Tonghua Grape 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 Tonghua Grape will offset losses from the drop in Tonghua Grape's long position.| Bank of China vs. Jafron Biomedical Co | Bank of China vs. Dezhan HealthCare Co | Bank of China vs. Ningbo Ligong Online | Bank of China vs. Guangzhou Boji Medical |
| Tonghua Grape vs. Industrial and Commercial | Tonghua Grape vs. Agricultural Bank of | Tonghua Grape vs. China Construction Bank | Tonghua Grape 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |