Correlation Between Bank of China and Everdisplay Optronics
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By analyzing existing cross correlation between Bank of China and Everdisplay Optronics Shanghai, you can compare the effects of market volatilities on Bank of China and Everdisplay Optronics 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 Everdisplay Optronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of China and Everdisplay Optronics.
Diversification Opportunities for Bank of China and Everdisplay Optronics
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bank and Everdisplay is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Bank of China and Everdisplay Optronics Shanghai in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Everdisplay Optronics 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 Everdisplay Optronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Everdisplay Optronics has no effect on the direction of Bank of China i.e., Bank of China and Everdisplay Optronics go up and down completely randomly.
Pair Corralation between Bank of China and Everdisplay Optronics
Assuming the 90 days trading horizon Bank of China is expected to generate 0.43 times more return on investment than Everdisplay Optronics. However, Bank of China is 2.33 times less risky than Everdisplay Optronics. It trades about 0.33 of its potential returns per unit of risk. Everdisplay Optronics Shanghai is currently generating about 0.01 per unit of risk. If you would invest 479.00 in Bank of China on September 13, 2024 and sell it today you would earn a total of 34.00 from holding Bank of China or generate 7.1% 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. Everdisplay Optronics Shanghai
Performance |
| Timeline |
| Bank of China |
| Everdisplay Optronics |
Bank of China and Everdisplay Optronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of China and Everdisplay Optronics
The main advantage of trading using opposite Bank of China and Everdisplay Optronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of China position performs unexpectedly, Everdisplay Optronics 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 Everdisplay Optronics will offset losses from the drop in Everdisplay Optronics' long position.| Bank of China vs. AUPU Home Style | Bank of China vs. HaiXin Foods Co | Bank of China vs. JuneYao Dairy Co | Bank of China vs. Zhengzhou Qianweiyangchu Food |
| Everdisplay Optronics vs. Industrial and Commercial | Everdisplay Optronics vs. Agricultural Bank of | Everdisplay Optronics vs. China Construction Bank | Everdisplay Optronics 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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