Correlation Between Beijing Mainstreets and Sungrow Power
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By analyzing existing cross correlation between Beijing Mainstreets Investment and Sungrow Power Supply, you can compare the effects of market volatilities on Beijing Mainstreets and Sungrow Power 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 Sungrow Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Mainstreets and Sungrow Power.
Diversification Opportunities for Beijing Mainstreets and Sungrow Power
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Beijing and Sungrow is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Mainstreets Investment and Sungrow Power Supply in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sungrow Power Supply 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 Sungrow Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sungrow Power Supply has no effect on the direction of Beijing Mainstreets i.e., Beijing Mainstreets and Sungrow Power go up and down completely randomly.
Pair Corralation between Beijing Mainstreets and Sungrow Power
Assuming the 90 days trading horizon Beijing Mainstreets Investment is expected to generate 1.34 times more return on investment than Sungrow Power. However, Beijing Mainstreets is 1.34 times more volatile than Sungrow Power Supply. It trades about -0.19 of its potential returns per unit of risk. Sungrow Power Supply is currently generating about -0.27 per unit of risk. If you would invest 288.00 in Beijing Mainstreets Investment on September 15, 2024 and sell it today you would lose (39.00) from holding Beijing Mainstreets Investment or give up 13.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Beijing Mainstreets Investment vs. Sungrow Power Supply
Performance |
| Timeline |
| Beijing Mainstreets |
| Sungrow Power Supply |
Beijing Mainstreets and Sungrow Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Mainstreets and Sungrow Power
The main advantage of trading using opposite Beijing Mainstreets and Sungrow Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Mainstreets position performs unexpectedly, Sungrow Power 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 Sungrow Power will offset losses from the drop in Sungrow Power's long position.| Beijing Mainstreets vs. V V Food | Beijing Mainstreets vs. Juewei Food Co | Beijing Mainstreets vs. Sichuan Fulin Transportation | Beijing Mainstreets vs. Xinjiang Tianrun Dairy |
| Sungrow Power vs. Zoje Resources Investment | Sungrow Power vs. Beijing Mainstreets Investment | Sungrow Power vs. Yili Chuanning Biotechnology | Sungrow Power vs. Hunan Investment Group |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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