Correlation Between Bank of China and Konfoong Materials
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By analyzing existing cross correlation between Bank of China and Konfoong Materials International, you can compare the effects of market volatilities on Bank of China and Konfoong Materials 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 Konfoong Materials. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of China and Konfoong Materials.
Diversification Opportunities for Bank of China and Konfoong Materials
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Bank and Konfoong is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Bank of China and Konfoong Materials Internation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Konfoong Materials 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 Konfoong Materials. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Konfoong Materials has no effect on the direction of Bank of China i.e., Bank of China and Konfoong Materials go up and down completely randomly.
Pair Corralation between Bank of China and Konfoong Materials
Assuming the 90 days trading horizon Bank of China is expected to generate 0.38 times more return on investment than Konfoong Materials. However, Bank of China is 2.62 times less risky than Konfoong Materials. It trades about 0.1 of its potential returns per unit of risk. Konfoong Materials International is currently generating about 0.02 per unit of risk. If you would invest 377.00 in Bank of China on October 5, 2024 and sell it today you would earn a total of 158.00 from holding Bank of China or generate 41.91% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Bank of China vs. Konfoong Materials Internation
Performance |
Timeline |
Bank of China |
Konfoong Materials |
Bank of China and Konfoong Materials Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bank of China and Konfoong Materials
The main advantage of trading using opposite Bank of China and Konfoong Materials positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of China position performs unexpectedly, Konfoong Materials 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 Konfoong Materials will offset losses from the drop in Konfoong Materials' long position.Bank of China vs. Guangdong Wens Foodstuff | Bank of China vs. Muyuan Foodstuff Co | Bank of China vs. Tongding Interconnection Information | Bank of China vs. Fujian Anjoy Foods |
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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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