Correlation Between Beijing Mainstreets and Qingdao Rural
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By analyzing existing cross correlation between Beijing Mainstreets Investment and Qingdao Rural Commercial, you can compare the effects of market volatilities on Beijing Mainstreets and Qingdao Rural 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 Qingdao Rural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Mainstreets and Qingdao Rural.
Diversification Opportunities for Beijing Mainstreets and Qingdao Rural
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Beijing and Qingdao is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Mainstreets Investment and Qingdao Rural Commercial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qingdao Rural Commercial 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 Qingdao Rural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qingdao Rural Commercial has no effect on the direction of Beijing Mainstreets i.e., Beijing Mainstreets and Qingdao Rural go up and down completely randomly.
Pair Corralation between Beijing Mainstreets and Qingdao Rural
Assuming the 90 days trading horizon Beijing Mainstreets Investment is expected to generate 2.11 times more return on investment than Qingdao Rural. However, Beijing Mainstreets is 2.11 times more volatile than Qingdao Rural Commercial. It trades about 0.26 of its potential returns per unit of risk. Qingdao Rural Commercial is currently generating about -0.09 per unit of risk. If you would invest 227.00 in Beijing Mainstreets Investment on October 24, 2024 and sell it today you would earn a total of 41.00 from holding Beijing Mainstreets Investment or generate 18.06% 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. Qingdao Rural Commercial
Performance |
| Timeline |
| Beijing Mainstreets |
| Qingdao Rural Commercial |
Beijing Mainstreets and Qingdao Rural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Mainstreets and Qingdao Rural
The main advantage of trading using opposite Beijing Mainstreets and Qingdao Rural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Mainstreets position performs unexpectedly, Qingdao Rural 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 Qingdao Rural will offset losses from the drop in Qingdao Rural's long position.| Beijing Mainstreets vs. Unisplendour Corp | Beijing Mainstreets vs. Jointo Energy Investment | Beijing Mainstreets vs. Harbin Hatou Investment | Beijing Mainstreets vs. Jiangsu Yueda Investment |
| Qingdao Rural vs. Shaanxi Broadcast TV | Qingdao Rural vs. Xinhua Winshare Publishing | Qingdao Rural vs. Jiugui Liquor Co | Qingdao Rural vs. Ningbo Ligong Online |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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