Correlation Between Bank of China and Sino Medical
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By analyzing existing cross correlation between Bank of China and Sino Medical Sciences, you can compare the effects of market volatilities on Bank of China and Sino Medical 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 Sino Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of China and Sino Medical.
Diversification Opportunities for Bank of China and Sino Medical
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and Sino is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Bank of China and Sino Medical Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sino Medical Sciences 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 Sino Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sino Medical Sciences has no effect on the direction of Bank of China i.e., Bank of China and Sino Medical go up and down completely randomly.
Pair Corralation between Bank of China and Sino Medical
Assuming the 90 days trading horizon Bank of China is expected to under-perform the Sino Medical. But the stock apears to be less risky and, when comparing its historical volatility, Bank of China is 1.31 times less risky than Sino Medical. The stock trades about -0.03 of its potential returns per unit of risk. The Sino Medical Sciences is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 976.00 in Sino Medical Sciences on November 1, 2024 and sell it today you would earn a total of 5.00 from holding Sino Medical Sciences or generate 0.51% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Bank of China vs. Sino Medical Sciences
Performance |
Timeline |
Bank of China |
Sino Medical Sciences |
Bank of China and Sino Medical Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bank of China and Sino Medical
The main advantage of trading using opposite Bank of China and Sino Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of China position performs unexpectedly, Sino Medical 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 Sino Medical will offset losses from the drop in Sino Medical's long position.Bank of China vs. HaiXin Foods Co | Bank of China vs. Zhongjing Food Co | Bank of China vs. Offshore Oil Engineering | Bank of China vs. Yingde Greatchem Chemicals |
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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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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