Correlation Between Hunan Investment and Beijing Jiaman
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By analyzing existing cross correlation between Hunan Investment Group and Beijing Jiaman Dress, you can compare the effects of market volatilities on Hunan Investment and Beijing Jiaman 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 Hunan Investment with a short position of Beijing Jiaman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunan Investment and Beijing Jiaman.
Diversification Opportunities for Hunan Investment and Beijing Jiaman
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hunan and Beijing is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Hunan Investment Group and Beijing Jiaman Dress in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Jiaman Dress and Hunan Investment 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 Hunan Investment Group are associated (or correlated) with Beijing Jiaman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Jiaman Dress has no effect on the direction of Hunan Investment i.e., Hunan Investment and Beijing Jiaman go up and down completely randomly.
Pair Corralation between Hunan Investment and Beijing Jiaman
Assuming the 90 days trading horizon Hunan Investment Group is expected to generate 1.34 times more return on investment than Beijing Jiaman. However, Hunan Investment is 1.34 times more volatile than Beijing Jiaman Dress. It trades about 0.03 of its potential returns per unit of risk. Beijing Jiaman Dress is currently generating about -0.02 per unit of risk. If you would invest 510.00 in Hunan Investment Group on November 6, 2024 and sell it today you would earn a total of 15.00 from holding Hunan Investment Group or generate 2.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hunan Investment Group vs. Beijing Jiaman Dress
Performance |
| Timeline |
| Hunan Investment |
| Beijing Jiaman Dress |
Hunan Investment and Beijing Jiaman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunan Investment and Beijing Jiaman
The main advantage of trading using opposite Hunan Investment and Beijing Jiaman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunan Investment position performs unexpectedly, Beijing Jiaman 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 Beijing Jiaman will offset losses from the drop in Beijing Jiaman's long position.| Hunan Investment vs. Chengdu Xinzhu RoadBridge | Hunan Investment vs. Harbin Air Conditioning | Hunan Investment vs. Longjian Road Bridge | Hunan Investment vs. Shuhua Sports Co |
| Beijing Jiaman vs. Fiberhome Telecommunication Technologies | Beijing Jiaman vs. AUPU Home Style | Beijing Jiaman vs. Maxvision Technology Corp | Beijing Jiaman vs. Smartgiant Technology Co |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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