Correlation Between Dalian Thermal and BOE Technology
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By analyzing existing cross correlation between Dalian Thermal Power and BOE Technology Group, you can compare the effects of market volatilities on Dalian Thermal and BOE Technology 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 Dalian Thermal with a short position of BOE Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dalian Thermal and BOE Technology.
Diversification Opportunities for Dalian Thermal and BOE Technology
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dalian and BOE is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Dalian Thermal Power and BOE Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BOE Technology Group and Dalian Thermal 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 Dalian Thermal Power are associated (or correlated) with BOE Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BOE Technology Group has no effect on the direction of Dalian Thermal i.e., Dalian Thermal and BOE Technology go up and down completely randomly.
Pair Corralation between Dalian Thermal and BOE Technology
Assuming the 90 days trading horizon Dalian Thermal Power is expected to under-perform the BOE Technology. In addition to that, Dalian Thermal is 3.52 times more volatile than BOE Technology Group. It trades about -0.15 of its total potential returns per unit of risk. BOE Technology Group is currently generating about 0.18 per unit of volatility. If you would invest 420.00 in BOE Technology Group on September 25, 2024 and sell it today you would earn a total of 16.00 from holding BOE Technology Group or generate 3.81% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 95.45% |
Values | Daily Returns |
Dalian Thermal Power vs. BOE Technology Group
Performance |
Timeline |
Dalian Thermal Power |
BOE Technology Group |
Dalian Thermal and BOE Technology Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Dalian Thermal and BOE Technology
The main advantage of trading using opposite Dalian Thermal and BOE Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dalian Thermal position performs unexpectedly, BOE Technology 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 BOE Technology will offset losses from the drop in BOE Technology's long position.Dalian Thermal vs. Industrial and Commercial | Dalian Thermal vs. Agricultural Bank of | Dalian Thermal vs. China Construction Bank | Dalian Thermal vs. Bank of China |
BOE Technology vs. Industrial and Commercial | BOE Technology vs. China Construction Bank | BOE Technology vs. Agricultural Bank of | BOE Technology vs. Bank of China |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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