Correlation Between Bank of China and Xilinmen Furniture
Specify exactly 2 symbols:
By analyzing existing cross correlation between Bank of China and Xilinmen Furniture Co, you can compare the effects of market volatilities on Bank of China and Xilinmen Furniture 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 Xilinmen Furniture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of China and Xilinmen Furniture.
Diversification Opportunities for Bank of China and Xilinmen Furniture
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bank and Xilinmen is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Bank of China and Xilinmen Furniture Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xilinmen Furniture 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 Xilinmen Furniture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xilinmen Furniture has no effect on the direction of Bank of China i.e., Bank of China and Xilinmen Furniture go up and down completely randomly.
Pair Corralation between Bank of China and Xilinmen Furniture
Assuming the 90 days trading horizon Bank of China is expected to generate 2.68 times less return on investment than Xilinmen Furniture. But when comparing it to its historical volatility, Bank of China is 2.32 times less risky than Xilinmen Furniture. It trades about 0.15 of its potential returns per unit of risk. Xilinmen Furniture Co is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 1,362 in Xilinmen Furniture Co on September 12, 2024 and sell it today you would earn a total of 478.00 from holding Xilinmen Furniture Co or generate 35.1% 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. Xilinmen Furniture Co
Performance |
Timeline |
Bank of China |
Xilinmen Furniture |
Bank of China and Xilinmen Furniture Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bank of China and Xilinmen Furniture
The main advantage of trading using opposite Bank of China and Xilinmen Furniture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of China position performs unexpectedly, Xilinmen Furniture 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 Xilinmen Furniture will offset losses from the drop in Xilinmen Furniture's long position.Bank of China vs. Chenzhou Jingui Silver | Bank of China vs. Hangzhou Pinming Software | Bank of China vs. Shandong Mining Machinery | Bank of China vs. Tibet Huayu Mining |
Xilinmen Furniture vs. Lutian Machinery Co | Xilinmen Furniture vs. PetroChina Co Ltd | Xilinmen Furniture vs. Bank of China | Xilinmen Furniture vs. Gansu Jiu Steel |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |