Correlation Between Beijing Mainstreets and Zhongshan Public
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By analyzing existing cross correlation between Beijing Mainstreets Investment and Zhongshan Public Utilities, you can compare the effects of market volatilities on Beijing Mainstreets and Zhongshan Public 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 Zhongshan Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Mainstreets and Zhongshan Public.
Diversification Opportunities for Beijing Mainstreets and Zhongshan Public
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Beijing and Zhongshan is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Mainstreets Investment and Zhongshan Public Utilities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongshan Public Uti 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 Zhongshan Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongshan Public Uti has no effect on the direction of Beijing Mainstreets i.e., Beijing Mainstreets and Zhongshan Public go up and down completely randomly.
Pair Corralation between Beijing Mainstreets and Zhongshan Public
Assuming the 90 days trading horizon Beijing Mainstreets Investment is expected to generate 1.78 times more return on investment than Zhongshan Public. However, Beijing Mainstreets is 1.78 times more volatile than Zhongshan Public Utilities. It trades about 0.13 of its potential returns per unit of risk. Zhongshan Public Utilities is currently generating about -0.12 per unit of risk. If you would invest 239.00 in Beijing Mainstreets Investment on October 29, 2024 and sell it today you would earn a total of 16.00 from holding Beijing Mainstreets Investment or generate 6.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Mainstreets Investment vs. Zhongshan Public Utilities
Performance |
| Timeline |
| Beijing Mainstreets |
| Zhongshan Public Uti |
Beijing Mainstreets and Zhongshan Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Mainstreets and Zhongshan Public
The main advantage of trading using opposite Beijing Mainstreets and Zhongshan Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Mainstreets position performs unexpectedly, Zhongshan Public 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 Zhongshan Public will offset losses from the drop in Zhongshan Public's long position.| Beijing Mainstreets vs. Guotai Epoint Software | Beijing Mainstreets vs. Guangzhou Dongfang Hotel | Beijing Mainstreets vs. Shanghai Yanpu Metal | Beijing Mainstreets vs. Fujian Boss Software |
| Zhongshan Public vs. Eastern Air Logistics | Zhongshan Public vs. Xiamen Goldenhome Co | Zhongshan Public vs. ROPEOK Technology Group | Zhongshan Public vs. Qumei Furniture Group |
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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