Correlation Between Bank of China and Jason Furniture
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By analyzing existing cross correlation between Bank of China and Jason Furniture, you can compare the effects of market volatilities on Bank of China and Jason Furniture 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 Jason Furniture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of China and Jason Furniture.
Diversification Opportunities for Bank of China and Jason Furniture
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Bank and Jason is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Bank of China and Jason Furniture in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jason Furniture 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 Jason Furniture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jason Furniture has no effect on the direction of Bank of China i.e., Bank of China and Jason Furniture go up and down completely randomly.
Pair Corralation between Bank of China and Jason Furniture
Assuming the 90 days trading horizon Bank of China is expected to generate 0.57 times more return on investment than Jason Furniture. However, Bank of China is 1.75 times less risky than Jason Furniture. It trades about 0.1 of its potential returns per unit of risk. Jason Furniture is currently generating about -0.02 per unit of risk. If you would invest 301.00 in Bank of China on September 26, 2024 and sell it today you would earn a total of 242.00 from holding Bank of China or generate 80.4% 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. Jason Furniture
Performance |
| Timeline |
| Bank of China |
| Jason Furniture |
Bank of China and Jason Furniture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of China and Jason Furniture
The main advantage of trading using opposite Bank of China and Jason Furniture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of China position performs unexpectedly, Jason Furniture 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 Jason Furniture will offset losses from the drop in Jason Furniture's long position.| Bank of China vs. Railway Signal Communication | Bank of China vs. Eastern Communications Co | Bank of China vs. Tongyu Communication | Bank of China vs. Shenzhen Kexin Communication |
| Jason Furniture vs. Agricultural Bank of | Jason Furniture vs. Industrial and Commercial | Jason Furniture vs. Bank of China | Jason Furniture vs. China Construction Bank |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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