Correlation Between Bank of China and Hangzhou Pinming
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By analyzing existing cross correlation between Bank of China and Hangzhou Pinming Software, you can compare the effects of market volatilities on Bank of China and Hangzhou Pinming 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 Hangzhou Pinming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of China and Hangzhou Pinming.
Diversification Opportunities for Bank of China and Hangzhou Pinming
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bank and Hangzhou is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Bank of China and Hangzhou Pinming Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Pinming Software 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 Hangzhou Pinming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Pinming Software has no effect on the direction of Bank of China i.e., Bank of China and Hangzhou Pinming go up and down completely randomly.
Pair Corralation between Bank of China and Hangzhou Pinming
Assuming the 90 days trading horizon Bank of China is expected to generate 0.37 times more return on investment than Hangzhou Pinming. However, Bank of China is 2.71 times less risky than Hangzhou Pinming. It trades about 0.18 of its potential returns per unit of risk. Hangzhou Pinming Software is currently generating about -0.47 per unit of risk. If you would invest 526.00 in Bank of China on October 15, 2024 and sell it today you would earn a total of 19.00 from holding Bank of China or generate 3.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of China vs. Hangzhou Pinming Software
Performance |
| Timeline |
| Bank of China |
| Hangzhou Pinming Software |
Bank of China and Hangzhou Pinming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of China and Hangzhou Pinming
The main advantage of trading using opposite Bank of China and Hangzhou Pinming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of China position performs unexpectedly, Hangzhou Pinming 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 Hangzhou Pinming will offset losses from the drop in Hangzhou Pinming's long position.| Bank of China vs. XinJiang GuoTong Pipeline | Bank of China vs. Guangzhou Haozhi Industrial | Bank of China vs. Hengli Industrial Development | Bank of China vs. Pengxin International Mining |
| Hangzhou Pinming vs. Kunwu Jiuding Investment | Hangzhou Pinming vs. Tieling Newcity Investment | Hangzhou Pinming vs. Cultural Investment Holdings | Hangzhou Pinming vs. China Sports Industry |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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