Correlation Between Duzhe Publishing and Bank of China
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By analyzing existing cross correlation between Duzhe Publishing Media and Bank of China, you can compare the effects of market volatilities on Duzhe Publishing 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 Duzhe Publishing with a short position of Bank of China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Duzhe Publishing and Bank of China.
Diversification Opportunities for Duzhe Publishing and Bank of China
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Duzhe and Bank is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Duzhe Publishing Media 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 Duzhe Publishing 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 Duzhe Publishing Media 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 Duzhe Publishing i.e., Duzhe Publishing and Bank of China go up and down completely randomly.
Pair Corralation between Duzhe Publishing and Bank of China
Assuming the 90 days trading horizon Duzhe Publishing Media is expected to generate 4.73 times more return on investment than Bank of China. However, Duzhe Publishing is 4.73 times more volatile than Bank of China. It trades about 0.23 of its potential returns per unit of risk. Bank of China is currently generating about 0.31 per unit of risk. If you would invest 582.00 in Duzhe Publishing Media on September 20, 2024 and sell it today you would earn a total of 123.00 from holding Duzhe Publishing Media or generate 21.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Duzhe Publishing Media vs. Bank of China
Performance |
| Timeline |
| Duzhe Publishing Media |
| Bank of China |
Duzhe Publishing and Bank of China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Duzhe Publishing and Bank of China
The main advantage of trading using opposite Duzhe Publishing and Bank of China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Duzhe Publishing 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.| Duzhe Publishing vs. ZYF Lopsking Aluminum | Duzhe Publishing vs. Bloomage Biotechnology Corp | Duzhe Publishing vs. Zhejiang Yayi Metal | Duzhe Publishing vs. Anhui Transport Consulting |
| Bank of China vs. Eastroc Beverage Group | Bank of China vs. Jiahe Foods Industry | Bank of China vs. Inly Media Co | Bank of China vs. Duzhe Publishing Media |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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