Correlation Between Bank of China and Shanghai AtHub
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By analyzing existing cross correlation between Bank of China and Shanghai AtHub Co, you can compare the effects of market volatilities on Bank of China and Shanghai AtHub 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 Shanghai AtHub. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of China and Shanghai AtHub.
Diversification Opportunities for Bank of China and Shanghai AtHub
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bank and Shanghai is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Bank of China and Shanghai AtHub Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai AtHub 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 Shanghai AtHub. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai AtHub has no effect on the direction of Bank of China i.e., Bank of China and Shanghai AtHub go up and down completely randomly.
Pair Corralation between Bank of China and Shanghai AtHub
Assuming the 90 days trading horizon Bank of China is expected to generate 0.47 times more return on investment than Shanghai AtHub. However, Bank of China is 2.12 times less risky than Shanghai AtHub. It trades about 0.1 of its potential returns per unit of risk. Shanghai AtHub Co is currently generating about 0.02 per unit of risk. If you would invest 300.00 in Bank of China on September 28, 2024 and sell it today you would earn a total of 248.00 from holding Bank of China or generate 82.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of China vs. Shanghai AtHub Co
Performance |
| Timeline |
| Bank of China |
| Shanghai AtHub |
Bank of China and Shanghai AtHub Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of China and Shanghai AtHub
The main advantage of trading using opposite Bank of China and Shanghai AtHub positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of China position performs unexpectedly, Shanghai AtHub 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 Shanghai AtHub will offset losses from the drop in Shanghai AtHub's long position.| Bank of China vs. Industrial and Commercial | Bank of China vs. Kweichow Moutai Co | Bank of China vs. Agricultural Bank of | Bank of China vs. China Mobile Limited |
| Shanghai AtHub vs. Industrial and Commercial | Shanghai AtHub vs. Agricultural Bank of | Shanghai AtHub vs. China Construction Bank | Shanghai AtHub 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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