Correlation Between Zhuhai Bojay and Bank of China
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By analyzing existing cross correlation between Zhuhai Bojay Electronics and Bank of China, you can compare the effects of market volatilities on Zhuhai Bojay 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 Zhuhai Bojay with a short position of Bank of China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhuhai Bojay and Bank of China.
Diversification Opportunities for Zhuhai Bojay and Bank of China
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhuhai and Bank is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Zhuhai Bojay Electronics 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 Zhuhai Bojay 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 Zhuhai Bojay Electronics 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 Zhuhai Bojay i.e., Zhuhai Bojay and Bank of China go up and down completely randomly.
Pair Corralation between Zhuhai Bojay and Bank of China
Assuming the 90 days trading horizon Zhuhai Bojay Electronics is expected to generate 2.96 times more return on investment than Bank of China. However, Zhuhai Bojay is 2.96 times more volatile than Bank of China. It trades about 0.18 of its potential returns per unit of risk. Bank of China is currently generating about 0.14 per unit of risk. If you would invest 2,374 in Zhuhai Bojay Electronics on September 23, 2024 and sell it today you would earn a total of 1,135 from holding Zhuhai Bojay Electronics or generate 47.81% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Zhuhai Bojay Electronics vs. Bank of China
Performance |
Timeline |
Zhuhai Bojay Electronics |
Bank of China |
Zhuhai Bojay and Bank of China Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Zhuhai Bojay and Bank of China
The main advantage of trading using opposite Zhuhai Bojay and Bank of China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhuhai Bojay 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.Zhuhai Bojay vs. Bank of China | Zhuhai Bojay vs. Kweichow Moutai Co | Zhuhai Bojay vs. PetroChina Co Ltd | Zhuhai Bojay vs. Bank of Communications |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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