Correlation Between Bank of China and Dawning Information
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By analyzing existing cross correlation between Bank of China and Dawning Information Industry, you can compare the effects of market volatilities on Bank of China and Dawning Information 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 Dawning Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of China and Dawning Information.
Diversification Opportunities for Bank of China and Dawning Information
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Bank and Dawning is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Bank of China and Dawning Information Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dawning Information 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 Dawning Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dawning Information has no effect on the direction of Bank of China i.e., Bank of China and Dawning Information go up and down completely randomly.
Pair Corralation between Bank of China and Dawning Information
Assuming the 90 days trading horizon Bank of China is expected to generate 15.93 times less return on investment than Dawning Information. But when comparing it to its historical volatility, Bank of China is 5.58 times less risky than Dawning Information. It trades about 0.11 of its potential returns per unit of risk. Dawning Information Industry is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 5,423 in Dawning Information Industry on August 29, 2024 and sell it today you would earn a total of 2,181 from holding Dawning Information Industry or generate 40.22% 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. Dawning Information Industry
Performance |
| Timeline |
| Bank of China |
| Dawning Information |
Bank of China and Dawning Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of China and Dawning Information
The main advantage of trading using opposite Bank of China and Dawning Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of China position performs unexpectedly, Dawning Information 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 Dawning Information will offset losses from the drop in Dawning Information'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 |
| Dawning Information vs. Luyin Investment Group | Dawning Information vs. Nuode Investment Co | Dawning Information vs. Xiandai Investment Co | Dawning Information vs. Hubei Geoway Investment |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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