Correlation Between Bank of China and China Publishing
Specify exactly 2 symbols:
By analyzing existing cross correlation between Bank of China and China Publishing Media, you can compare the effects of market volatilities on Bank of China and China Publishing 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 China Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of China and China Publishing.
Diversification Opportunities for Bank of China and China Publishing
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Bank and China is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Bank of China and China Publishing Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Publishing 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 China Publishing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Publishing Media has no effect on the direction of Bank of China i.e., Bank of China and China Publishing go up and down completely randomly.
Pair Corralation between Bank of China and China Publishing
Assuming the 90 days trading horizon Bank of China is expected to generate 9.24 times less return on investment than China Publishing. But when comparing it to its historical volatility, Bank of China is 4.95 times less risky than China Publishing. It trades about 0.11 of its potential returns per unit of risk. China Publishing Media is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 706.00 in China Publishing Media on August 29, 2024 and sell it today you would earn a total of 148.00 from holding China Publishing Media or generate 20.96% 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. China Publishing Media
Performance |
| Timeline |
| Bank of China |
| China Publishing Media |
Bank of China and China Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of China and China Publishing
The main advantage of trading using opposite Bank of China and China Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of China position performs unexpectedly, China Publishing 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 China Publishing will offset losses from the drop in China Publishing'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 |
| China Publishing vs. Industrial and Commercial | China Publishing vs. Agricultural Bank of | China Publishing vs. China Construction Bank | China Publishing 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |