Correlation Between AUPU Home and Bank of China
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By analyzing existing cross correlation between AUPU Home Style and Bank of China, you can compare the effects of market volatilities on AUPU Home and Bank of China 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 AUPU Home with a short position of Bank of China. Check out your portfolio center. Please also check ongoing floating volatility patterns of AUPU Home and Bank of China.
Diversification Opportunities for AUPU Home and Bank of China
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AUPU and Bank is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding AUPU Home Style and Bank of China in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of China and AUPU Home 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 AUPU Home Style are associated (or correlated) with Bank of China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of China has no effect on the direction of AUPU Home i.e., AUPU Home and Bank of China go up and down completely randomly.
Pair Corralation between AUPU Home and Bank of China
Assuming the 90 days trading horizon AUPU Home is expected to generate 1.21 times less return on investment than Bank of China. In addition to that, AUPU Home is 1.91 times more volatile than Bank of China. It trades about 0.15 of its total potential returns per unit of risk. Bank of China is currently generating about 0.35 per unit of volatility. If you would invest 482.00 in Bank of China on September 14, 2024 and sell it today you would earn a total of 38.00 from holding Bank of China or generate 7.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AUPU Home Style vs. Bank of China
Performance |
| Timeline |
| AUPU Home Style |
| Bank of China |
AUPU Home and Bank of China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AUPU Home and Bank of China
The main advantage of trading using opposite AUPU Home and Bank of China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AUPU Home position performs unexpectedly, Bank of China 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 Bank of China will offset losses from the drop in Bank of China's long position.| AUPU Home vs. Qingdao Citymedia Co | AUPU Home vs. Dook Media Group | AUPU Home vs. Shenzhen Silver Basis | AUPU Home vs. Fujian Oriental Silver |
| 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 |
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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