Correlation Between Bank of China and Bank of Nanjing
Specify exactly 2 symbols:
By analyzing existing cross correlation between Bank of China and Bank of Nanjing, you can compare the effects of market volatilities on Bank of China and Bank of Nanjing 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 with a short position of Bank of Nanjing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of China and Bank of Nanjing.
Diversification Opportunities for Bank of China and Bank of Nanjing
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bank and Bank is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Bank of China and Bank of Nanjing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of Nanjing and Bank of China 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 Bank of Nanjing. 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 Nanjing has no effect on the direction of Bank of China i.e., Bank of China and Bank of Nanjing go up and down completely randomly.
Pair Corralation between Bank of China and Bank of Nanjing
Assuming the 90 days trading horizon Bank of China is expected to generate 0.7 times more return on investment than Bank of Nanjing. However, Bank of China is 1.44 times less risky than Bank of Nanjing. It trades about 0.12 of its potential returns per unit of risk. Bank of Nanjing is currently generating about 0.04 per unit of risk. If you would invest 490.00 in Bank of China on September 24, 2024 and sell it today you would earn a total of 46.00 from holding Bank of China or generate 9.39% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 98.36% |
Values | Daily Returns |
Bank of China vs. Bank of Nanjing
Performance |
Timeline |
Bank of China |
Bank of Nanjing |
Bank of China and Bank of Nanjing Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bank of China and Bank of Nanjing
The main advantage of trading using opposite Bank of China and Bank of Nanjing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of China position performs unexpectedly, Bank of Nanjing 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 Nanjing will offset losses from the drop in Bank of Nanjing's long position.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 |
Bank of Nanjing vs. BYD Co Ltd | Bank of Nanjing vs. China Mobile Limited | Bank of Nanjing vs. Agricultural Bank of | Bank of Nanjing vs. Industrial and Commercial |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
Bonds Directory Find actively traded corporate debentures issued by US companies | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Stocks Directory Find actively traded stocks across global markets | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
Money Managers Screen money managers from public funds and ETFs managed around the world |