Correlation Between Bank of China Limited and TOPPS TILES
Can any of the company-specific risk be diversified away by investing in both Bank of China Limited and TOPPS TILES 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 China Limited and TOPPS TILES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank of China and TOPPS TILES PLC, you can compare the effects of market volatilities on Bank of China Limited and TOPPS TILES 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 China Limited with a short position of TOPPS TILES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of China Limited and TOPPS TILES.
Diversification Opportunities for Bank of China Limited and TOPPS TILES
-0.93 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and TOPPS is -0.93. Overlapping area represents the amount of risk that can be diversified away by holding Bank of China and TOPPS TILES PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TOPPS TILES PLC and Bank of China Limited 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 China are associated (or correlated) with TOPPS TILES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TOPPS TILES PLC has no effect on the direction of Bank of China Limited i.e., Bank of China Limited and TOPPS TILES go up and down completely randomly.
Pair Corralation between Bank of China Limited and TOPPS TILES
Assuming the 90 days horizon Bank of China is expected to generate 0.92 times more return on investment than TOPPS TILES. However, Bank of China is 1.08 times less risky than TOPPS TILES. It trades about 0.23 of its potential returns per unit of risk. TOPPS TILES PLC is currently generating about -0.13 per unit of risk. If you would invest 50.00 in Bank of China on December 1, 2024 and sell it today you would earn a total of 4.00 from holding Bank of China or generate 8.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of China vs. TOPPS TILES PLC
Performance |
| Timeline |
| Bank of China Limited |
| TOPPS TILES PLC |
Bank of China Limited and TOPPS TILES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of China Limited and TOPPS TILES
The main advantage of trading using opposite Bank of China Limited and TOPPS TILES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of China Limited position performs unexpectedly, TOPPS TILES 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 TOPPS TILES will offset losses from the drop in TOPPS TILES's long position.| Bank of China Limited vs. Playa Hotels Resorts | Bank of China Limited vs. ANTA Sports Products | Bank of China Limited vs. GUILD ESPORTS PLC | Bank of China Limited vs. SQUIRREL MEDIA SA |
| TOPPS TILES vs. The Home Depot | TOPPS TILES vs. The Home Depot | TOPPS TILES vs. Floor Decor Holdings | TOPPS TILES vs. LESLIES INC DL |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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