Correlation Between Inly Media and Bank of China
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By analyzing existing cross correlation between Inly Media Co and Bank of China, you can compare the effects of market volatilities on Inly Media 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 Inly Media with a short position of Bank of China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inly Media and Bank of China.
Diversification Opportunities for Inly Media and Bank of China
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Inly and Bank is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Inly Media Co 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 Inly Media 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 Inly Media Co 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 Inly Media i.e., Inly Media and Bank of China go up and down completely randomly.
Pair Corralation between Inly Media and Bank of China
Assuming the 90 days trading horizon Inly Media Co is expected to generate 3.08 times more return on investment than Bank of China. However, Inly Media is 3.08 times more volatile than Bank of China. It trades about 0.06 of its potential returns per unit of risk. Bank of China is currently generating about 0.09 per unit of risk. If you would invest 955.00 in Inly Media Co on September 24, 2024 and sell it today you would earn a total of 980.00 from holding Inly Media Co or generate 102.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inly Media Co vs. Bank of China
Performance |
| Timeline |
| Inly Media |
| Bank of China |
Inly Media and Bank of China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inly Media and Bank of China
The main advantage of trading using opposite Inly Media and Bank of China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inly Media 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.| Inly Media vs. Industrial and Commercial | Inly Media vs. Agricultural Bank of | Inly Media vs. China Construction Bank | Inly Media vs. Bank of China |
| Bank of China vs. Industrial and Commercial | Bank of China vs. Kweichow Moutai Co | Bank of China vs. Agricultural Bank of | Bank of China vs. China Mobile Limited |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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