Correlation Between Beijing Mainstreets and Shenyang Huitian
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By analyzing existing cross correlation between Beijing Mainstreets Investment and Shenyang Huitian Thermal, you can compare the effects of market volatilities on Beijing Mainstreets and Shenyang Huitian 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 Shenyang Huitian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Mainstreets and Shenyang Huitian.
Diversification Opportunities for Beijing Mainstreets and Shenyang Huitian
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Beijing and Shenyang is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Mainstreets Investment and Shenyang Huitian Thermal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenyang Huitian Thermal 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 Shenyang Huitian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenyang Huitian Thermal has no effect on the direction of Beijing Mainstreets i.e., Beijing Mainstreets and Shenyang Huitian go up and down completely randomly.
Pair Corralation between Beijing Mainstreets and Shenyang Huitian
Assuming the 90 days trading horizon Beijing Mainstreets Investment is expected to under-perform the Shenyang Huitian. In addition to that, Beijing Mainstreets is 1.29 times more volatile than Shenyang Huitian Thermal. It trades about -0.1 of its total potential returns per unit of risk. Shenyang Huitian Thermal is currently generating about 0.06 per unit of volatility. If you would invest 296.00 in Shenyang Huitian Thermal on September 14, 2024 and sell it today you would earn a total of 102.00 from holding Shenyang Huitian Thermal or generate 34.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.58% |
| Values | Daily Returns |
Beijing Mainstreets Investment vs. Shenyang Huitian Thermal
Performance |
| Timeline |
| Beijing Mainstreets |
| Shenyang Huitian Thermal |
Beijing Mainstreets and Shenyang Huitian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Mainstreets and Shenyang Huitian
The main advantage of trading using opposite Beijing Mainstreets and Shenyang Huitian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Mainstreets position performs unexpectedly, Shenyang Huitian 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 Shenyang Huitian will offset losses from the drop in Shenyang Huitian's long position.| Beijing Mainstreets vs. China Life Insurance | Beijing Mainstreets vs. Cinda Securities Co | Beijing Mainstreets vs. Piotech Inc A | Beijing Mainstreets vs. Dongxing Sec Co |
| Shenyang Huitian vs. Agricultural Bank of | Shenyang Huitian vs. Industrial and Commercial | Shenyang Huitian vs. Bank of China | Shenyang Huitian vs. PetroChina Co Ltd |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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