Correlation Between Bank of China and Western Superconducting
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By analyzing existing cross correlation between Bank of China and Western Superconducting Tech, you can compare the effects of market volatilities on Bank of China and Western Superconducting 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 Western Superconducting. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of China and Western Superconducting.
Diversification Opportunities for Bank of China and Western Superconducting
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Bank and Western is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Bank of China and Western Superconducting Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Superconducting 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 Western Superconducting. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Superconducting has no effect on the direction of Bank of China i.e., Bank of China and Western Superconducting go up and down completely randomly.
Pair Corralation between Bank of China and Western Superconducting
Assuming the 90 days trading horizon Bank of China is expected to generate 0.45 times more return on investment than Western Superconducting. However, Bank of China is 2.24 times less risky than Western Superconducting. It trades about 0.09 of its potential returns per unit of risk. Western Superconducting Tech is currently generating about 0.0 per unit of risk. If you would invest 392.00 in Bank of China on September 4, 2024 and sell it today you would earn a total of 117.00 from holding Bank of China or generate 29.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of China vs. Western Superconducting Tech
Performance |
| Timeline |
| Bank of China |
| Western Superconducting |
Bank of China and Western Superconducting Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of China and Western Superconducting
The main advantage of trading using opposite Bank of China and Western Superconducting positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of China position performs unexpectedly, Western Superconducting 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 Western Superconducting will offset losses from the drop in Western Superconducting's long position.| Bank of China vs. Servyou Software Group | Bank of China vs. Keli Sensing Technology | Bank of China vs. Linewell Software Co | Bank of China vs. Bus Online Co |
| Western Superconducting vs. Bank of China | Western Superconducting vs. Kweichow Moutai Co | Western Superconducting vs. PetroChina Co Ltd | Western Superconducting vs. Bank of Communications |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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