Correlation Between Bank of China and Beijing Bashi
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By analyzing existing cross correlation between Bank of China and Beijing Bashi Media, you can compare the effects of market volatilities on Bank of China and Beijing Bashi 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 Bashi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of China and Beijing Bashi.
Diversification Opportunities for Bank of China and Beijing Bashi
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bank and Beijing is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Bank of China and Beijing Bashi Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Bashi Media 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 Bashi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Bashi Media has no effect on the direction of Bank of China i.e., Bank of China and Beijing Bashi go up and down completely randomly.
Pair Corralation between Bank of China and Beijing Bashi
Assuming the 90 days trading horizon Bank of China is expected to generate 0.43 times more return on investment than Beijing Bashi. However, Bank of China is 2.32 times less risky than Beijing Bashi. It trades about 0.09 of its potential returns per unit of risk. Beijing Bashi Media is currently generating about 0.03 per unit of risk. If you would invest 296.00 in Bank of China on September 12, 2024 and sell it today you would earn a total of 225.00 from holding Bank of China or generate 76.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of China vs. Beijing Bashi Media
Performance |
| Timeline |
| Bank of China |
| Beijing Bashi Media |
Bank of China and Beijing Bashi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of China and Beijing Bashi
The main advantage of trading using opposite Bank of China and Beijing Bashi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of China position performs unexpectedly, Beijing Bashi 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 Bashi will offset losses from the drop in Beijing Bashi's long position.| Bank of China vs. Chenzhou Jingui Silver | Bank of China vs. Hangzhou Pinming Software | Bank of China vs. Shandong Mining Machinery | Bank of China vs. Tibet Huayu Mining |
| Beijing Bashi vs. Lutian Machinery Co | Beijing Bashi vs. PetroChina Co Ltd | Beijing Bashi vs. Bank of China | Beijing Bashi vs. Gansu Jiu Steel |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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