Correlation Between Bank of China and Zhuhai Comleader
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By analyzing existing cross correlation between Bank of China and Zhuhai Comleader Information, you can compare the effects of market volatilities on Bank of China and Zhuhai Comleader 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 Zhuhai Comleader. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of China and Zhuhai Comleader.
Diversification Opportunities for Bank of China and Zhuhai Comleader
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bank and Zhuhai is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Bank of China and Zhuhai Comleader Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhuhai Comleader Inf 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 Zhuhai Comleader. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhuhai Comleader Inf has no effect on the direction of Bank of China i.e., Bank of China and Zhuhai Comleader go up and down completely randomly.
Pair Corralation between Bank of China and Zhuhai Comleader
Assuming the 90 days trading horizon Bank of China is expected to generate 0.34 times more return on investment than Zhuhai Comleader. However, Bank of China is 2.97 times less risky than Zhuhai Comleader. It trades about 0.09 of its potential returns per unit of risk. Zhuhai Comleader Information is currently generating about 0.02 per unit of risk. If you would invest 397.00 in Bank of China on September 14, 2024 and sell it today you would earn a total of 123.00 from holding Bank of China or generate 30.98% 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. Zhuhai Comleader Information
Performance |
| Timeline |
| Bank of China |
| Zhuhai Comleader Inf |
Bank of China and Zhuhai Comleader Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of China and Zhuhai Comleader
The main advantage of trading using opposite Bank of China and Zhuhai Comleader positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of China position performs unexpectedly, Zhuhai Comleader 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 Zhuhai Comleader will offset losses from the drop in Zhuhai Comleader'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 |
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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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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