Correlation Between Beijing Mainstreets and Chengdu Spaceon
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By analyzing existing cross correlation between Beijing Mainstreets Investment and Chengdu Spaceon Electronics, you can compare the effects of market volatilities on Beijing Mainstreets and Chengdu Spaceon 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 Chengdu Spaceon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Mainstreets and Chengdu Spaceon.
Diversification Opportunities for Beijing Mainstreets and Chengdu Spaceon
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Beijing and Chengdu is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Mainstreets Investment and Chengdu Spaceon Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu Spaceon Elec 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 Chengdu Spaceon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu Spaceon Elec has no effect on the direction of Beijing Mainstreets i.e., Beijing Mainstreets and Chengdu Spaceon go up and down completely randomly.
Pair Corralation between Beijing Mainstreets and Chengdu Spaceon
Assuming the 90 days trading horizon Beijing Mainstreets Investment is expected to generate 1.03 times more return on investment than Chengdu Spaceon. However, Beijing Mainstreets is 1.03 times more volatile than Chengdu Spaceon Electronics. It trades about 0.05 of its potential returns per unit of risk. Chengdu Spaceon Electronics is currently generating about -0.2 per unit of risk. If you would invest 240.00 in Beijing Mainstreets Investment on January 28, 2025 and sell it today you would earn a total of 5.00 from holding Beijing Mainstreets Investment or generate 2.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Mainstreets Investment vs. Chengdu Spaceon Electronics
Performance |
| Timeline |
| Beijing Mainstreets |
| Chengdu Spaceon Elec |
Beijing Mainstreets and Chengdu Spaceon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Mainstreets and Chengdu Spaceon
The main advantage of trading using opposite Beijing Mainstreets and Chengdu Spaceon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Mainstreets position performs unexpectedly, Chengdu Spaceon 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 Chengdu Spaceon will offset losses from the drop in Chengdu Spaceon's long position.| Beijing Mainstreets vs. Industrial and Commercial | Beijing Mainstreets vs. Kweichow Moutai Co | Beijing Mainstreets vs. Agricultural Bank of | Beijing Mainstreets vs. China Mobile Limited |
| Chengdu Spaceon vs. Rising Nonferrous Metals | Chengdu Spaceon vs. NBTM New Materials | Chengdu Spaceon vs. Gansu Mogao Industrial | Chengdu Spaceon vs. Anhui Jinhe Industrial |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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