Correlation Between Bank of China and Dongxing Sec
Specify exactly 2 symbols:
By analyzing existing cross correlation between Bank of China and Dongxing Sec Co, you can compare the effects of market volatilities on Bank of China and Dongxing Sec 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 Dongxing Sec. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of China and Dongxing Sec.
Diversification Opportunities for Bank of China and Dongxing Sec
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Bank and Dongxing is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Bank of China and Dongxing Sec Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongxing Sec 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 Dongxing Sec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongxing Sec has no effect on the direction of Bank of China i.e., Bank of China and Dongxing Sec go up and down completely randomly.
Pair Corralation between Bank of China and Dongxing Sec
Assuming the 90 days trading horizon Bank of China is expected to generate 0.67 times more return on investment than Dongxing Sec. However, Bank of China is 1.49 times less risky than Dongxing Sec. It trades about 0.08 of its potential returns per unit of risk. Dongxing Sec Co is currently generating about 0.04 per unit of risk. If you would invest 297.00 in Bank of China on August 26, 2024 and sell it today you would earn a total of 194.00 from holding Bank of China or generate 65.32% 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. Dongxing Sec Co
Performance |
| Timeline |
| Bank of China |
| Dongxing Sec |
Bank of China and Dongxing Sec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of China and Dongxing Sec
The main advantage of trading using opposite Bank of China and Dongxing Sec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of China position performs unexpectedly, Dongxing Sec 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 Dongxing Sec will offset losses from the drop in Dongxing Sec's long position.| Bank of China vs. Jiujiang Shanshui Technology | Bank of China vs. Dhc Software Co | Bank of China vs. Changchun UP Optotech | Bank of China vs. Shenzhen Topway Video |
| Dongxing Sec vs. Industrial and Commercial | Dongxing Sec vs. Agricultural Bank of | Dongxing Sec vs. China Construction Bank | Dongxing Sec 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |