Correlation Between Beijing Baolande and Bank of China
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By analyzing existing cross correlation between Beijing Baolande Software and Bank of China, you can compare the effects of market volatilities on Beijing Baolande 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 Beijing Baolande with a short position of Bank of China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Baolande and Bank of China.
Diversification Opportunities for Beijing Baolande and Bank of China
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Beijing and Bank is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Baolande Software 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 Beijing Baolande 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 Beijing Baolande Software 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 Beijing Baolande i.e., Beijing Baolande and Bank of China go up and down completely randomly.
Pair Corralation between Beijing Baolande and Bank of China
Assuming the 90 days trading horizon Beijing Baolande Software is expected to generate 2.62 times more return on investment than Bank of China. However, Beijing Baolande is 2.62 times more volatile than Bank of China. It trades about 0.19 of its potential returns per unit of risk. Bank of China is currently generating about 0.05 per unit of risk. If you would invest 2,414 in Beijing Baolande Software on November 6, 2024 and sell it today you would earn a total of 298.00 from holding Beijing Baolande Software or generate 12.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Baolande Software vs. Bank of China
Performance |
| Timeline |
| Beijing Baolande Software |
| Bank of China |
Beijing Baolande and Bank of China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Baolande and Bank of China
The main advantage of trading using opposite Beijing Baolande and Bank of China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Baolande 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.| Beijing Baolande vs. Aluminum Corp of | Beijing Baolande vs. Heilongjiang Transport Development | Beijing Baolande vs. China Aluminum International | Beijing Baolande vs. Everjoy Health Group |
| Bank of China vs. Fibocom Wireless | Bank of China vs. Nanjing Putian Telecommunications | Bank of China vs. Jilin Jlu Communication | Bank of China vs. Queclink Wireless Solutions |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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