Correlation Between Bank of China and Shanghai Suochen
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By analyzing existing cross correlation between Bank of China and Shanghai Suochen Information, you can compare the effects of market volatilities on Bank of China and Shanghai Suochen 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 Suochen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of China and Shanghai Suochen.
Diversification Opportunities for Bank of China and Shanghai Suochen
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Bank and Shanghai is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Bank of China and Shanghai Suochen Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Suochen 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 Shanghai Suochen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Suochen Inf has no effect on the direction of Bank of China i.e., Bank of China and Shanghai Suochen go up and down completely randomly.
Pair Corralation between Bank of China and Shanghai Suochen
Assuming the 90 days trading horizon Bank of China is expected to generate 0.34 times more return on investment than Shanghai Suochen. However, Bank of China is 2.93 times less risky than Shanghai Suochen. It trades about 0.1 of its potential returns per unit of risk. Shanghai Suochen Information is currently generating about -0.01 per unit of risk. If you would invest 376.00 in Bank of China on September 26, 2024 and sell it today you would earn a total of 167.00 from holding Bank of China or generate 44.41% 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. Shanghai Suochen Information
Performance |
| Timeline |
| Bank of China |
| Shanghai Suochen Inf |
Bank of China and Shanghai Suochen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of China and Shanghai Suochen
The main advantage of trading using opposite Bank of China and Shanghai Suochen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of China position performs unexpectedly, Shanghai Suochen 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 Suochen will offset losses from the drop in Shanghai Suochen's long position.| Bank of China vs. Railway Signal Communication | Bank of China vs. Eastern Communications Co | Bank of China vs. Tongyu Communication | Bank of China vs. Shenzhen Kexin Communication |
| Shanghai Suochen vs. Industrial and Commercial | Shanghai Suochen vs. Agricultural Bank of | Shanghai Suochen vs. China Construction Bank | Shanghai Suochen 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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