Correlation Between Bank of China and Sinocelltech
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By analyzing existing cross correlation between Bank of China and Sinocelltech Group, you can compare the effects of market volatilities on Bank of China and Sinocelltech 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 Sinocelltech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of China and Sinocelltech.
Diversification Opportunities for Bank of China and Sinocelltech
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Bank and Sinocelltech is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Bank of China and Sinocelltech Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinocelltech Group 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 Sinocelltech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinocelltech Group has no effect on the direction of Bank of China i.e., Bank of China and Sinocelltech go up and down completely randomly.
Pair Corralation between Bank of China and Sinocelltech
Assuming the 90 days trading horizon Bank of China is expected to generate 0.44 times more return on investment than Sinocelltech. However, Bank of China is 2.3 times less risky than Sinocelltech. It trades about 0.07 of its potential returns per unit of risk. Sinocelltech Group is currently generating about -0.01 per unit of risk. If you would invest 444.00 in Bank of China on September 1, 2024 and sell it today you would earn a total of 57.00 from holding Bank of China or generate 12.84% 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. Sinocelltech Group
Performance |
| Timeline |
| Bank of China |
| Sinocelltech Group |
Bank of China and Sinocelltech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of China and Sinocelltech
The main advantage of trading using opposite Bank of China and Sinocelltech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of China position performs unexpectedly, Sinocelltech 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 Sinocelltech will offset losses from the drop in Sinocelltech's long position.| Bank of China vs. China Minmetals Rare | Bank of China vs. China Eastern Airlines | Bank of China vs. Metro Investment Development | Bank of China vs. Cultural Investment Holdings |
| Sinocelltech vs. PetroChina Co Ltd | Sinocelltech vs. China Mobile Limited | Sinocelltech vs. CNOOC Limited | Sinocelltech vs. Ping An Insurance |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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