Correlation Between Bank of China and ZION OIL
Can any of the company-specific risk be diversified away by investing in both Bank of China and ZION OIL 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 China and ZION OIL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank of China and ZION OIL GAS, you can compare the effects of market volatilities on Bank of China and ZION OIL 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 ZION OIL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of China and ZION OIL.
Diversification Opportunities for Bank of China and ZION OIL
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and ZION is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bank of China and ZION OIL GAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZION OIL GAS 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 ZION OIL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZION OIL GAS has no effect on the direction of Bank of China i.e., Bank of China and ZION OIL go up and down completely randomly.
Pair Corralation between Bank of China and ZION OIL
If you would invest 37.00 in Bank of China on December 27, 2024 and sell it today you would earn a total of 18.00 from holding Bank of China or generate 48.65% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 98.41% |
Values | Daily Returns |
Bank of China vs. ZION OIL GAS
Performance |
Timeline |
Bank of China |
ZION OIL GAS |
Bank of China and ZION OIL Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bank of China and ZION OIL
The main advantage of trading using opposite Bank of China and ZION OIL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of China position performs unexpectedly, ZION OIL 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 ZION OIL will offset losses from the drop in ZION OIL's long position.Bank of China vs. Nucletron Electronic Aktiengesellschaft | Bank of China vs. Calibre Mining Corp | Bank of China vs. LG Electronics | Bank of China vs. UMC Electronics Co |
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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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