Correlation Between Beijing Mainstreets and Hubeiyichang Transportation
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By analyzing existing cross correlation between Beijing Mainstreets Investment and Hubeiyichang Transportation Group, you can compare the effects of market volatilities on Beijing Mainstreets and Hubeiyichang Transportation 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 Hubeiyichang Transportation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Mainstreets and Hubeiyichang Transportation.
Diversification Opportunities for Beijing Mainstreets and Hubeiyichang Transportation
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Beijing and Hubeiyichang is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Mainstreets Investment and Hubeiyichang Transportation Gr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubeiyichang Transportation 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 Hubeiyichang Transportation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubeiyichang Transportation has no effect on the direction of Beijing Mainstreets i.e., Beijing Mainstreets and Hubeiyichang Transportation go up and down completely randomly.
Pair Corralation between Beijing Mainstreets and Hubeiyichang Transportation
Assuming the 90 days trading horizon Beijing Mainstreets Investment is expected to under-perform the Hubeiyichang Transportation. In addition to that, Beijing Mainstreets is 2.37 times more volatile than Hubeiyichang Transportation Group. It trades about -0.02 of its total potential returns per unit of risk. Hubeiyichang Transportation Group is currently generating about 0.0 per unit of volatility. If you would invest 521.00 in Hubeiyichang Transportation Group on October 16, 2024 and sell it today you would lose (53.00) from holding Hubeiyichang Transportation Group or give up 10.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Mainstreets Investment vs. Hubeiyichang Transportation Gr
Performance |
| Timeline |
| Beijing Mainstreets |
| Hubeiyichang Transportation |
Beijing Mainstreets and Hubeiyichang Transportation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Mainstreets and Hubeiyichang Transportation
The main advantage of trading using opposite Beijing Mainstreets and Hubeiyichang Transportation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Mainstreets position performs unexpectedly, Hubeiyichang Transportation 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 Hubeiyichang Transportation will offset losses from the drop in Hubeiyichang Transportation's long position.| Beijing Mainstreets vs. Shanghai Newtouch Software | Beijing Mainstreets vs. Anhui Xinhua Media | Beijing Mainstreets vs. Omnijoi Media Corp | Beijing Mainstreets vs. China Publishing Media |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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