Correlation Between Bank of the Philippine Is and China CITIC
Can any of the company-specific risk be diversified away by investing in both Bank of the Philippine Is and China CITIC at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Bank of the Philippine Is and China CITIC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank of the and China CITIC Bank, you can compare the effects of market volatilities on Bank of the Philippine Is and China CITIC 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 the Philippine Is with a short position of China CITIC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of the Philippine Is and China CITIC.
Diversification Opportunities for Bank of the Philippine Is and China CITIC
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and China is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bank of the and China CITIC Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China CITIC Bank and Bank of the Philippine Is 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 the are associated (or correlated) with China CITIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China CITIC Bank has no effect on the direction of Bank of the Philippine Is i.e., Bank of the Philippine Is and China CITIC go up and down completely randomly.
Pair Corralation between Bank of the Philippine Is and China CITIC
Assuming the 90 days horizon Bank of the Philippine Is is expected to generate 6.56 times less return on investment than China CITIC. But when comparing it to its historical volatility, Bank of the is 3.73 times less risky than China CITIC. It trades about 0.03 of its potential returns per unit of risk. China CITIC Bank is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 43.00 in China CITIC Bank on August 27, 2024 and sell it today you would earn a total of 16.00 from holding China CITIC Bank or generate 37.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 83.44% |
| Values | Daily Returns |
Bank of the vs. China CITIC Bank
Performance |
| Timeline |
| Bank of the Philippine Is |
| China CITIC Bank |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bank of the Philippine Is and China CITIC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of the Philippine Is and China CITIC
The main advantage of trading using opposite Bank of the Philippine Is and China CITIC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of the Philippine Is position performs unexpectedly, China CITIC 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 China CITIC will offset losses from the drop in China CITIC's long position.| Bank of the Philippine Is vs. BOC Hong Kong | Bank of the Philippine Is vs. China Merchants Bank | Bank of the Philippine Is vs. BDO Unibank ADR | Bank of the Philippine Is vs. United Security Bancshares |
| China CITIC vs. Postal Savings Bank | China CITIC vs. China Merchants Bank | China CITIC vs. China Merchants Bank | China CITIC vs. Community West Bancshares |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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