Correlation Between Bank of China and Hubei Geoway
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By analyzing existing cross correlation between Bank of China and Hubei Geoway Investment, you can compare the effects of market volatilities on Bank of China and Hubei Geoway 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 Hubei Geoway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of China and Hubei Geoway.
Diversification Opportunities for Bank of China and Hubei Geoway
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bank and Hubei is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Bank of China and Hubei Geoway Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubei Geoway Investment 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 Hubei Geoway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubei Geoway Investment has no effect on the direction of Bank of China i.e., Bank of China and Hubei Geoway go up and down completely randomly.
Pair Corralation between Bank of China and Hubei Geoway
Assuming the 90 days trading horizon Bank of China is expected to generate 1.03 times less return on investment than Hubei Geoway. But when comparing it to its historical volatility, Bank of China is 2.09 times less risky than Hubei Geoway. It trades about 0.08 of its potential returns per unit of risk. Hubei Geoway Investment is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 136.00 in Hubei Geoway Investment on August 29, 2024 and sell it today you would earn a total of 12.00 from holding Hubei Geoway Investment or generate 8.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of China vs. Hubei Geoway Investment
Performance |
| Timeline |
| Bank of China |
| Hubei Geoway Investment |
Bank of China and Hubei Geoway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of China and Hubei Geoway
The main advantage of trading using opposite Bank of China and Hubei Geoway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of China position performs unexpectedly, Hubei Geoway 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 Hubei Geoway will offset losses from the drop in Hubei Geoway's long position.| Bank of China vs. Dhc Software Co | Bank of China vs. Jinyu Bio Technology Co | Bank of China vs. BTG Hotels Group | Bank of China vs. Linewell Software Co |
| Hubei Geoway vs. Ningxia Building Materials | Hubei Geoway vs. Orinko Advanced Plastics | Hubei Geoway vs. Sanxiang Advanced Materials | Hubei Geoway vs. Ningbo Tip Rubber |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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