Correlation Between Bank of China and Yindu Kitchen
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By analyzing existing cross correlation between Bank of China and Yindu Kitchen Equipment, you can compare the effects of market volatilities on Bank of China and Yindu Kitchen 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 Yindu Kitchen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of China and Yindu Kitchen.
Diversification Opportunities for Bank of China and Yindu Kitchen
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Bank and Yindu is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Bank of China and Yindu Kitchen Equipment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yindu Kitchen Equipment 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 Yindu Kitchen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yindu Kitchen Equipment has no effect on the direction of Bank of China i.e., Bank of China and Yindu Kitchen go up and down completely randomly.
Pair Corralation between Bank of China and Yindu Kitchen
Assuming the 90 days trading horizon Bank of China is expected to generate 0.64 times more return on investment than Yindu Kitchen. However, Bank of China is 1.56 times less risky than Yindu Kitchen. It trades about 0.37 of its potential returns per unit of risk. Yindu Kitchen Equipment is currently generating about -0.05 per unit of risk. If you would invest 479.00 in Bank of China on September 13, 2024 and sell it today you would earn a total of 41.00 from holding Bank of China or generate 8.56% 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. Yindu Kitchen Equipment
Performance |
| Timeline |
| Bank of China |
| Yindu Kitchen Equipment |
Bank of China and Yindu Kitchen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of China and Yindu Kitchen
The main advantage of trading using opposite Bank of China and Yindu Kitchen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of China position performs unexpectedly, Yindu Kitchen 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 Yindu Kitchen will offset losses from the drop in Yindu Kitchen's long position.| Bank of China vs. Industrial Bank Co | Bank of China vs. GRG Banking Equipment | Bank of China vs. Central Plains Environment | Bank of China vs. Guosheng Financial Holding |
| Yindu Kitchen vs. Industrial and Commercial | Yindu Kitchen vs. Kweichow Moutai Co | Yindu Kitchen vs. Agricultural Bank of | Yindu Kitchen vs. China Mobile Limited |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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