Correlation Between Bank Central and United Express
Can any of the company-specific risk be diversified away by investing in both Bank Central and United Express 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 Central and United Express into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Central Asia and United Express, you can compare the effects of market volatilities on Bank Central and United Express 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 Central with a short position of United Express. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Central and United Express.
Diversification Opportunities for Bank Central and United Express
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bank and United is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Bank Central Asia and United Express in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Express and Bank Central 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 Central Asia are associated (or correlated) with United Express. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United Express has no effect on the direction of Bank Central i.e., Bank Central and United Express go up and down completely randomly.
Pair Corralation between Bank Central and United Express
Assuming the 90 days horizon Bank Central Asia is expected to generate 0.33 times more return on investment than United Express. However, Bank Central Asia is 3.07 times less risky than United Express. It trades about -0.04 of its potential returns per unit of risk. United Express is currently generating about -0.05 per unit of risk. If you would invest 1,341 in Bank Central Asia on August 18, 2025 and sell it today you would lose (78.00) from holding Bank Central Asia or give up 5.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.48% |
| Values | Daily Returns |
Bank Central Asia vs. United Express
Performance |
| Timeline |
| Bank Central Asia |
| United Express |
Bank Central and United Express Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Central and United Express
The main advantage of trading using opposite Bank Central and United Express positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Central position performs unexpectedly, United Express 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 United Express will offset losses from the drop in United Express' long position.| Bank Central vs. Oversea Chinese Banking | Bank Central vs. China Citic Bank | Bank Central vs. Nordea Bank Abp | Bank Central vs. Overseas Chinese Banking |
| United Express vs. Cavitation Techs | United Express vs. Next10 Inc | United Express vs. FBR Limited | United Express vs. IBC Advanced Alloys |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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