Correlation Between Bank of China and Zhangjiagang Freetrade
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By analyzing existing cross correlation between Bank of China and Zhangjiagang Freetrade Science, you can compare the effects of market volatilities on Bank of China and Zhangjiagang Freetrade 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 Zhangjiagang Freetrade. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of China and Zhangjiagang Freetrade.
Diversification Opportunities for Bank of China and Zhangjiagang Freetrade
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Bank and Zhangjiagang is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Bank of China and Zhangjiagang Freetrade Science in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhangjiagang Freetrade 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 Zhangjiagang Freetrade. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhangjiagang Freetrade has no effect on the direction of Bank of China i.e., Bank of China and Zhangjiagang Freetrade go up and down completely randomly.
Pair Corralation between Bank of China and Zhangjiagang Freetrade
Assuming the 90 days trading horizon Bank of China is expected to generate 4.97 times less return on investment than Zhangjiagang Freetrade. But when comparing it to its historical volatility, Bank of China is 3.39 times less risky than Zhangjiagang Freetrade. It trades about 0.14 of its potential returns per unit of risk. Zhangjiagang Freetrade Science is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 338.00 in Zhangjiagang Freetrade Science on September 2, 2024 and sell it today you would earn a total of 45.00 from holding Zhangjiagang Freetrade Science or generate 13.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of China vs. Zhangjiagang Freetrade Science
Performance |
| Timeline |
| Bank of China |
| Zhangjiagang Freetrade |
Bank of China and Zhangjiagang Freetrade Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of China and Zhangjiagang Freetrade
The main advantage of trading using opposite Bank of China and Zhangjiagang Freetrade positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of China position performs unexpectedly, Zhangjiagang Freetrade 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 Zhangjiagang Freetrade will offset losses from the drop in Zhangjiagang Freetrade's long position.| Bank of China vs. Marssenger Kitchenware Co | Bank of China vs. Thinkingdom Media Group | Bank of China vs. Hengdian Entertainment Co | Bank of China vs. Lander Sports Development |
| Zhangjiagang Freetrade vs. Industrial and Commercial | Zhangjiagang Freetrade vs. Agricultural Bank of | Zhangjiagang Freetrade vs. China Construction Bank | Zhangjiagang Freetrade 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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