Correlation Between BC TECHNOLOGY and China Overseas

Can any of the company-specific risk be diversified away by investing in both BC TECHNOLOGY and China Overseas 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 BC TECHNOLOGY and China Overseas into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between BC TECHNOLOGY GROUP and China Overseas Land, you can compare the effects of market volatilities on BC TECHNOLOGY and China Overseas 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 BC TECHNOLOGY with a short position of China Overseas. Check out your portfolio center. Please also check ongoing floating volatility patterns of BC TECHNOLOGY and China Overseas.

Diversification Opportunities for BC TECHNOLOGY and China Overseas

0.08

Correlation Coefficient

BC TECHNOLOGY  China Overseas

Significant diversification

The 3 months correlation between 9D2 and China is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding BC TECHNOLOGY GROUP and China Overseas Land in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Overseas Land and BC TECHNOLOGY 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 BC TECHNOLOGY GROUP are associated (or correlated) with China Overseas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Overseas Land has no effect on the direction of BC TECHNOLOGY i.e., BC TECHNOLOGY and China Overseas go up and down completely randomly.

Pair Corralation between BC TECHNOLOGY and China Overseas

Assuming the 90 days horizon BC TECHNOLOGY GROUP is expected to under-perform the China Overseas. In addition to that, BC TECHNOLOGY is 1.24 times more volatile than China Overseas Land. It trades about -0.01 of its total potential returns per unit of risk. China Overseas Land is currently generating about 0.02 per unit of volatility. If you would invest  151.00  in China Overseas Land on July 26, 2025 and sell it today you would earn a total of  0.00  from holding China Overseas Land or generate 0.0% return on investment over 90 days.

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

BC TECHNOLOGY GROUP  vs.  China Overseas Land

BC TECHNOLOGY GROUP

Risk-Adjusted Performance

Weakest

Over the last 90 days BC TECHNOLOGY GROUP has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, BC TECHNOLOGY is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

China Overseas Land

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in China Overseas Land are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, China Overseas is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with BC TECHNOLOGY and China Overseas

The main advantage of trading using opposite BC TECHNOLOGY and China Overseas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BC TECHNOLOGY position performs unexpectedly, China Overseas 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 China Overseas will offset losses from the drop in China Overseas' long position.

The idea behind BC TECHNOLOGY GROUP and China Overseas Land 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.