Correlation Between Beijing Mainstreets and Zangge Holding
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By analyzing existing cross correlation between Beijing Mainstreets Investment and Zangge Holding Co, you can compare the effects of market volatilities on Beijing Mainstreets and Zangge Holding 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 Beijing Mainstreets with a short position of Zangge Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Mainstreets and Zangge Holding.
Diversification Opportunities for Beijing Mainstreets and Zangge Holding
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Beijing and Zangge is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Mainstreets Investment and Zangge Holding Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zangge Holding and Beijing Mainstreets 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 Beijing Mainstreets Investment are associated (or correlated) with Zangge Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zangge Holding has no effect on the direction of Beijing Mainstreets i.e., Beijing Mainstreets and Zangge Holding go up and down completely randomly.
Pair Corralation between Beijing Mainstreets and Zangge Holding
Assuming the 90 days trading horizon Beijing Mainstreets is expected to generate 7.0 times less return on investment than Zangge Holding. In addition to that, Beijing Mainstreets is 2.02 times more volatile than Zangge Holding Co. It trades about 0.01 of its total potential returns per unit of risk. Zangge Holding Co is currently generating about 0.18 per unit of volatility. If you would invest 2,768 in Zangge Holding Co on October 14, 2024 and sell it today you would earn a total of 182.00 from holding Zangge Holding Co or generate 6.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Beijing Mainstreets Investment vs. Zangge Holding Co
Performance |
| Timeline |
| Beijing Mainstreets |
| Zangge Holding |
Beijing Mainstreets and Zangge Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Mainstreets and Zangge Holding
The main advantage of trading using opposite Beijing Mainstreets and Zangge Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Mainstreets position performs unexpectedly, Zangge Holding 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 Zangge Holding will offset losses from the drop in Zangge Holding's long position.| Beijing Mainstreets vs. MayAir Technology Co | Beijing Mainstreets vs. Tangel Publishing | Beijing Mainstreets vs. Changjiang Publishing Media | Beijing Mainstreets vs. Xinhua Winshare Publishing |
| Zangge Holding vs. Zhejiang Publishing Media | Zangge Holding vs. Jiangsu Phoenix Publishing | Zangge Holding vs. Puya Semiconductor Shanghai | Zangge Holding vs. GigaDevice SemiconductorBeiji |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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