Correlation Between Beijing Mainstreets and Inner Mongolia
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By analyzing existing cross correlation between Beijing Mainstreets Investment and Inner Mongolia Dazhong, you can compare the effects of market volatilities on Beijing Mainstreets and Inner Mongolia 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 Inner Mongolia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Mainstreets and Inner Mongolia.
Diversification Opportunities for Beijing Mainstreets and Inner Mongolia
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Beijing and Inner is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Mainstreets Investment and Inner Mongolia Dazhong in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inner Mongolia Dazhong 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 Inner Mongolia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inner Mongolia Dazhong has no effect on the direction of Beijing Mainstreets i.e., Beijing Mainstreets and Inner Mongolia go up and down completely randomly.
Pair Corralation between Beijing Mainstreets and Inner Mongolia
Assuming the 90 days trading horizon Beijing Mainstreets Investment is expected to under-perform the Inner Mongolia. In addition to that, Beijing Mainstreets is 2.09 times more volatile than Inner Mongolia Dazhong. It trades about -0.03 of its total potential returns per unit of risk. Inner Mongolia Dazhong is currently generating about -0.02 per unit of volatility. If you would invest 1,294 in Inner Mongolia Dazhong on September 14, 2024 and sell it today you would lose (307.00) from holding Inner Mongolia Dazhong or give up 23.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.79% |
| Values | Daily Returns |
Beijing Mainstreets Investment vs. Inner Mongolia Dazhong
Performance |
| Timeline |
| Beijing Mainstreets |
| Inner Mongolia Dazhong |
Beijing Mainstreets and Inner Mongolia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Mainstreets and Inner Mongolia
The main advantage of trading using opposite Beijing Mainstreets and Inner Mongolia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Mainstreets position performs unexpectedly, Inner Mongolia 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 Inner Mongolia will offset losses from the drop in Inner Mongolia'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 |
| Inner Mongolia vs. Jiangsu Financial Leasing | Inner Mongolia vs. Harbin Hatou Investment | Inner Mongolia vs. China Construction Bank | Inner Mongolia vs. Beijing Mainstreets Investment |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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