Correlation Between BANK OF QUEENSLAND (BXZSG and BANK OCHINA

Can any of the company-specific risk be diversified away by investing in both BANK OF QUEENSLAND (BXZSG and BANK OCHINA at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining BANK OF QUEENSLAND (BXZSG and BANK OCHINA into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between BANK OF QUEENSLAND and BANK OCHINA H, you can compare the effects of market volatilities on BANK OF QUEENSLAND (BXZSG and BANK OCHINA 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 QUEENSLAND (BXZSG with a short position of BANK OCHINA. Check out your portfolio center. Please also check ongoing floating volatility patterns of BANK OF QUEENSLAND (BXZSG and BANK OCHINA.

Diversification Opportunities for BANK OF QUEENSLAND (BXZSG and BANK OCHINA

-0.13

Correlation Coefficient

BANK OF QUEENSLAND (BXZSG  BANK OCHINA

Good diversification

The 3 months correlation between BANK and BANK is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding BANK OF QUEENSLAND and BANK OCHINA H in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BANK OCHINA H and BANK OF QUEENSLAND (BXZSG 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 QUEENSLAND are associated (or correlated) with BANK OCHINA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BANK OCHINA H has no effect on the direction of BANK OF QUEENSLAND (BXZSG i.e., BANK OF QUEENSLAND (BXZSG and BANK OCHINA go up and down completely randomly.

Pair Corralation between BANK OF QUEENSLAND (BXZSG and BANK OCHINA

Assuming the 90 days trading horizon BANK OF QUEENSLAND is expected to under-perform the BANK OCHINA. But the stock apears to be less risky and, when comparing its historical volatility, BANK OF QUEENSLAND is 1.42 times less risky than BANK OCHINA. The stock trades about -0.04 of its potential returns per unit of risk. The BANK OCHINA H is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest  1,090  in BANK OCHINA H on December 21, 2024 and sell it today you would earn a total of  270.00  from holding BANK OCHINA H or generate 24.77% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

BANK OF QUEENSLAND  vs.  BANK OCHINA H

BANK OF QUEENSLAND (BXZSG

Risk-Adjusted Performance

Very Weak

Over the last 90 days BANK OF QUEENSLAND has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, BANK OF QUEENSLAND (BXZSG is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

BANK OCHINA H

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in BANK OCHINA H are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, BANK OCHINA reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with BANK OF QUEENSLAND (BXZSG and BANK OCHINA

The main advantage of trading using opposite BANK OF QUEENSLAND (BXZSG and BANK OCHINA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BANK OF QUEENSLAND (BXZSG position performs unexpectedly, BANK OCHINA 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 OCHINA will offset losses from the drop in BANK OCHINA's long position.

The idea behind BANK OF QUEENSLAND and BANK OCHINA H pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.