Correlation Between Beijing Mainstreets and YLZ Information
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By analyzing existing cross correlation between Beijing Mainstreets Investment and YLZ Information Tech, you can compare the effects of market volatilities on Beijing Mainstreets and YLZ Information 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 YLZ Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Mainstreets and YLZ Information.
Diversification Opportunities for Beijing Mainstreets and YLZ Information
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Beijing and YLZ is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Mainstreets Investment and YLZ Information Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YLZ Information Tech 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 YLZ Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YLZ Information Tech has no effect on the direction of Beijing Mainstreets i.e., Beijing Mainstreets and YLZ Information go up and down completely randomly.
Pair Corralation between Beijing Mainstreets and YLZ Information
Assuming the 90 days trading horizon Beijing Mainstreets is expected to generate 3.43 times less return on investment than YLZ Information. But when comparing it to its historical volatility, Beijing Mainstreets Investment is 1.13 times less risky than YLZ Information. It trades about 0.02 of its potential returns per unit of risk. YLZ Information Tech is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 317.00 in YLZ Information Tech on November 3, 2024 and sell it today you would earn a total of 9.00 from holding YLZ Information Tech or generate 2.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Mainstreets Investment vs. YLZ Information Tech
Performance |
| Timeline |
| Beijing Mainstreets |
| YLZ Information Tech |
Beijing Mainstreets and YLZ Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Mainstreets and YLZ Information
The main advantage of trading using opposite Beijing Mainstreets and YLZ Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Mainstreets position performs unexpectedly, YLZ Information 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 YLZ Information will offset losses from the drop in YLZ Information's long position.| Beijing Mainstreets vs. China Longyuan Power | Beijing Mainstreets vs. PetroChina Co Ltd | Beijing Mainstreets vs. Huaneng Lancang River | Beijing Mainstreets vs. ShuYu Civilian Pharmacy |
| YLZ Information vs. Industrial and Commercial | YLZ Information vs. Kweichow Moutai Co | YLZ Information vs. Agricultural Bank of | YLZ Information vs. China Mobile Limited |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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