Correlation Between Vontron Technology and Bank of China
Specify exactly 2 symbols:
By analyzing existing cross correlation between Vontron Technology Co and Bank of China, you can compare the effects of market volatilities on Vontron Technology 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 Vontron Technology with a short position of Bank of China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vontron Technology and Bank of China.
Diversification Opportunities for Vontron Technology and Bank of China
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Vontron and Bank is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Vontron Technology Co 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 Vontron Technology 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 Vontron Technology Co 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 Vontron Technology i.e., Vontron Technology and Bank of China go up and down completely randomly.
Pair Corralation between Vontron Technology and Bank of China
Assuming the 90 days trading horizon Vontron Technology Co is expected to generate 1.45 times more return on investment than Bank of China. However, Vontron Technology is 1.45 times more volatile than Bank of China. It trades about 0.09 of its potential returns per unit of risk. Bank of China is currently generating about 0.09 per unit of risk. If you would invest 727.00 in Vontron Technology Co on September 25, 2024 and sell it today you would earn a total of 165.00 from holding Vontron Technology Co or generate 22.7% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Vontron Technology Co vs. Bank of China
Performance |
Timeline |
Vontron Technology |
Bank of China |
Vontron Technology and Bank of China Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Vontron Technology and Bank of China
The main advantage of trading using opposite Vontron Technology and Bank of China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vontron Technology 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.Vontron Technology vs. Bank of China | Vontron Technology vs. Kweichow Moutai Co | Vontron Technology vs. PetroChina Co Ltd | Vontron Technology vs. Bank of Communications |
Bank of China vs. Elite Color Environmental | Bank of China vs. Oppein Home Group | Bank of China vs. Tianjin Capital Environmental | Bank of China vs. Everdisplay Optronics Shanghai |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
Money Managers Screen money managers from public funds and ETFs managed around the world | |
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |