Correlation Between Beijing Mainstreets and Hubei Yingtong
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By analyzing existing cross correlation between Beijing Mainstreets Investment and Hubei Yingtong Telecommunication, you can compare the effects of market volatilities on Beijing Mainstreets and Hubei Yingtong 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 Hubei Yingtong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Mainstreets and Hubei Yingtong.
Diversification Opportunities for Beijing Mainstreets and Hubei Yingtong
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Beijing and Hubei is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Mainstreets Investment and Hubei Yingtong Telecommunicati in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubei Yingtong Telec 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 Hubei Yingtong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubei Yingtong Telec has no effect on the direction of Beijing Mainstreets i.e., Beijing Mainstreets and Hubei Yingtong go up and down completely randomly.
Pair Corralation between Beijing Mainstreets and Hubei Yingtong
Assuming the 90 days trading horizon Beijing Mainstreets Investment is expected to generate 0.58 times more return on investment than Hubei Yingtong. However, Beijing Mainstreets Investment is 1.73 times less risky than Hubei Yingtong. It trades about 0.01 of its potential returns per unit of risk. Hubei Yingtong Telecommunication is currently generating about -0.05 per unit of risk. If you would invest 247.00 in Beijing Mainstreets Investment on October 11, 2024 and sell it today you would lose (2.00) from holding Beijing Mainstreets Investment or give up 0.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Mainstreets Investment vs. Hubei Yingtong Telecommunicati
Performance |
| Timeline |
| Beijing Mainstreets |
| Hubei Yingtong Telec |
Beijing Mainstreets and Hubei Yingtong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Mainstreets and Hubei Yingtong
The main advantage of trading using opposite Beijing Mainstreets and Hubei Yingtong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Mainstreets position performs unexpectedly, Hubei Yingtong 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 Hubei Yingtong will offset losses from the drop in Hubei Yingtong's long position.| Beijing Mainstreets vs. Quectel Wireless Solutions | Beijing Mainstreets vs. Xiangyang Automobile Bearing | Beijing Mainstreets vs. SUNSEA Telecommunications Co | Beijing Mainstreets vs. China Mobile Limited |
| Hubei Yingtong vs. Beijing Mainstreets Investment | Hubei Yingtong vs. Shenyang Chemical Industry | Hubei Yingtong vs. Liaoning Dingjide Petrochemical | Hubei Yingtong vs. Jinsanjiang Silicon Material |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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