Correlation Between Bank of China and Harbin Hatou
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By analyzing existing cross correlation between Bank of China and Harbin Hatou Investment, you can compare the effects of market volatilities on Bank of China and Harbin Hatou 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 Harbin Hatou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of China and Harbin Hatou.
Diversification Opportunities for Bank of China and Harbin Hatou
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Bank and Harbin is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Bank of China and Harbin Hatou Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harbin Hatou 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 Harbin Hatou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harbin Hatou Investment has no effect on the direction of Bank of China i.e., Bank of China and Harbin Hatou go up and down completely randomly.
Pair Corralation between Bank of China and Harbin Hatou
Assuming the 90 days trading horizon Bank of China is expected to generate 0.36 times more return on investment than Harbin Hatou. However, Bank of China is 2.8 times less risky than Harbin Hatou. It trades about 0.17 of its potential returns per unit of risk. Harbin Hatou Investment is currently generating about -0.12 per unit of risk. If you would invest 523.00 in Bank of China on October 20, 2024 and sell it today you would earn a total of 22.00 from holding Bank of China or generate 4.21% 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. Harbin Hatou Investment
Performance |
| Timeline |
| Bank of China |
| Harbin Hatou Investment |
Bank of China and Harbin Hatou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of China and Harbin Hatou
The main advantage of trading using opposite Bank of China and Harbin Hatou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of China position performs unexpectedly, Harbin Hatou 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 Harbin Hatou will offset losses from the drop in Harbin Hatou's long position.| Bank of China vs. Shaanxi Construction Machinery | Bank of China vs. Digital China Information | Bank of China vs. Longmaster Information Tech | Bank of China vs. Ningbo Construction Co |
| Harbin Hatou vs. Omnijoi Media Corp | Harbin Hatou vs. Longxing Chemical Stock | Harbin Hatou vs. China Publishing Media | Harbin Hatou vs. Beijing Enlight Media |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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