Correlation Between Bank of China and Allied Machinery
Specify exactly 2 symbols:
By analyzing existing cross correlation between Bank of China and Allied Machinery Co, you can compare the effects of market volatilities on Bank of China and Allied Machinery 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 Allied Machinery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of China and Allied Machinery.
Diversification Opportunities for Bank of China and Allied Machinery
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bank and Allied is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Bank of China and Allied Machinery Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allied Machinery 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 Allied Machinery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allied Machinery has no effect on the direction of Bank of China i.e., Bank of China and Allied Machinery go up and down completely randomly.
Pair Corralation between Bank of China and Allied Machinery
Assuming the 90 days trading horizon Bank of China is expected to generate 0.44 times more return on investment than Allied Machinery. However, Bank of China is 2.28 times less risky than Allied Machinery. It trades about 0.38 of its potential returns per unit of risk. Allied Machinery Co is currently generating about -0.1 per unit of risk. If you would invest 491.00 in Bank of China on September 24, 2024 and sell it today you would earn a total of 35.00 from holding Bank of China or generate 7.13% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Bank of China vs. Allied Machinery Co
Performance |
Timeline |
Bank of China |
Allied Machinery |
Bank of China and Allied Machinery Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bank of China and Allied Machinery
The main advantage of trading using opposite Bank of China and Allied Machinery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of China position performs unexpectedly, Allied Machinery 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 Allied Machinery will offset losses from the drop in Allied Machinery'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 |
Allied Machinery vs. Bank of China | Allied Machinery vs. Kweichow Moutai Co | Allied Machinery vs. PetroChina Co Ltd | Allied Machinery vs. Bank of Communications |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
Content Syndication Quickly integrate customizable finance content to your own investment portal | |
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
Bonds Directory Find actively traded corporate debentures issued by US companies | |
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |