Correlation Between Lander Sports and Beijing Jiaman
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By analyzing existing cross correlation between Lander Sports Development and Beijing Jiaman Dress, you can compare the effects of market volatilities on Lander Sports 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 Lander Sports with a short position of Beijing Jiaman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lander Sports and Beijing Jiaman.
Diversification Opportunities for Lander Sports and Beijing Jiaman
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Lander and Beijing is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Lander Sports Development 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 Lander Sports 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 Lander Sports Development 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 Lander Sports i.e., Lander Sports and Beijing Jiaman go up and down completely randomly.
Pair Corralation between Lander Sports and Beijing Jiaman
Assuming the 90 days trading horizon Lander Sports Development is expected to generate 1.64 times more return on investment than Beijing Jiaman. However, Lander Sports is 1.64 times more volatile than Beijing Jiaman Dress. It trades about 0.06 of its potential returns per unit of risk. Beijing Jiaman Dress is currently generating about -0.07 per unit of risk. If you would invest 285.00 in Lander Sports Development on September 3, 2024 and sell it today you would earn a total of 20.00 from holding Lander Sports Development or generate 7.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lander Sports Development vs. Beijing Jiaman Dress
Performance |
| Timeline |
| Lander Sports Development |
| Beijing Jiaman Dress |
Lander Sports and Beijing Jiaman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lander Sports and Beijing Jiaman
The main advantage of trading using opposite Lander Sports and Beijing Jiaman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lander Sports 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.| Lander Sports vs. Industrial and Commercial | Lander Sports vs. China Construction Bank | Lander Sports vs. Bank of China | Lander Sports vs. Agricultural Bank of |
| Beijing Jiaman vs. PetroChina Co Ltd | Beijing Jiaman vs. China Mobile Limited | Beijing Jiaman vs. Industrial and Commercial | Beijing Jiaman vs. China Life Insurance |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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