Correlation Between Bank of China and Oppein Home
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By analyzing existing cross correlation between Bank of China and Oppein Home Group, you can compare the effects of market volatilities on Bank of China and Oppein Home 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 Oppein Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of China and Oppein Home.
Diversification Opportunities for Bank of China and Oppein Home
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bank and Oppein is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Bank of China and Oppein Home Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppein Home Group 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 Oppein Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppein Home Group has no effect on the direction of Bank of China i.e., Bank of China and Oppein Home go up and down completely randomly.
Pair Corralation between Bank of China and Oppein Home
Assuming the 90 days trading horizon Bank of China is expected to generate 1.17 times less return on investment than Oppein Home. But when comparing it to its historical volatility, Bank of China is 2.61 times less risky than Oppein Home. It trades about 0.35 of its potential returns per unit of risk. Oppein Home Group is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 7,202 in Oppein Home Group on September 14, 2024 and sell it today you would earn a total of 623.00 from holding Oppein Home Group or generate 8.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of China vs. Oppein Home Group
Performance |
| Timeline |
| Bank of China |
| Oppein Home Group |
Bank of China and Oppein Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of China and Oppein Home
The main advantage of trading using opposite Bank of China and Oppein Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of China position performs unexpectedly, Oppein Home 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 Oppein Home will offset losses from the drop in Oppein Home'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 |
| Oppein Home vs. Lutian Machinery Co | Oppein Home vs. China Longyuan Power | Oppein Home vs. PetroChina Co Ltd | Oppein Home 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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